Venus Protocol Loses $3.7M After Supply‑cap Exploit Leveraged Illiquid THE Token

Venus Protocol was hit by a $3.7 million exploit after an attacker manipulated the platform’s supply-cap protections using the illiquid Thena (THE) token as collateral. The breach quickly turned a weakness in collateral handling into a live liquidity and access crisis for borrowers, liquidity providers, and treasury users.