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wstETH oracle misconfiguration causes about $26–27M in Aave liquidations, highlighting oracle risk

Aave faced roughly $26–$27 million in liquidations after a wstETH price error tied to an oracle update, according to blockchain data and coverage.

Mar 11, 20266:16 AMNewsroom AI

The DeFi lending protocol Aave recorded about $26–$27 million in liquidations after a wstETH price glitch, with on‑chain data showing a sharp spike in liquidations over a 24‑hour period [1][2][3].

Multiple reports attribute the event to a misconfiguration or price update in the oracle Aave uses to value collateral, which led to automatic liquidations when collateral values were updated [1][2].

Coverage of the incident highlights the risks of oracle failures in DeFi and the need for robust system checks to protect user assets [2].

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