Loopscale Labs faced a significant setback when an oracle attack on April 26 led to the theft of approximately $5.7 million in USDC and 1,200 SOL. This exploit manipulated Loopscale’s pricing function, causing collateral values to be misrepresented. Despite the loss, the DeFi community largely praised Loopscale for its quick and professional response, which included suspending market functions to mitigate further damage and coordinating with law enforcement for recovery efforts. The vulnerability was identified not in RateX itself, but in how Loopscale priced RateX's tokens. RateX confirmed that no users on its platform suffered losses and has joined efforts to track the hacker. As negotiations with the attacker advance, there are early indications of a potential partial recovery of the stolen funds, and Loopscale is preparing a detailed recovery plan for its users.

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