🚨 A hacker manipulated $THE's price and exploited @VenusProtocol on BSC. $2.18M in bad debt was left behind. 1/ Here's how it happened. 🧵👇

2/ The attacker received 7,400 $ETH from Tornado Cash. He then deposited the $ETH into Aave as collateral and borrowed ~$9.92M in stablecoins:

3/ The attacker split the stablecoins across multiple wallets and began buying $THE. Then he pumped $THE's price on CEXs. He likely opened large $THE long positions before the pump and profited as the price surged.

4/ While $THE was trading at an inflated price, he deposited 36.1M $THE into Venus as collateral via 2 wallets and borrowed ~$5.07M in assets: 2,172 $BNB, 1.516M $CAKE, 20 $BTC

5/ Then the attacker dumped $THE on the CEX. Before the dump, he likely opened large short positions on the exchange. When $THE crashed, the shorts profited while the price collapse triggered cascading liquidations on Venus.

6/ After the liquidation, the collateral could not cover the loans. Remaining bad debt: 🔴 1.18M $CAKE 🔴 1.84M $THE Total shortfall: ~$2.18M.

7/ On-chain, the attack looks unprofitable. But the real profit likely came from longs opened before the pump and shorts opened before the dump on the CEX.