Oracle Misconfiguration Leaves Moonwell With $1.8 Million in Bad Debt

Moonwell incurred roughly $1.8 million in bad debt after an oracle misconfiguration on February 15, 2026, a failure that drained protocol reserves and resurfaced a recurring fragility in DeFi infrastructure. The core issue is that a single pricing error on a key collateral asset can translate directly into solvency damage through automated liquidations.