In early March, a DeFi user lost 14 ETH (~$33,000) due to a faulty oracle update that caused a price feed delay between Pyth’s cbETH/USD and ETH/USD feeds. While ETH prices adjusted, cbETH prices remained stagnant for nearly an hour, triggering liquidations despite the actual price ratio remaining stable. The user reached out to Morpho and others for accountability but faced a cycle of decentralized responsibility dodging. Morpho stated they only provide infrastructure; Pyth claimed their prices were accurate and suggested users ensure updates; Re7 Labs noted timing mismatches but attributed issues to how push-based oracles function. No party claimed responsibility or offered compensation. This incident raises larger issues surrounding decentralization: in traditional finance, faulty brokerage actions can lead to legal recourse, whereas in DeFi, users often receive forum replies rather than solutions. Solution opportunities were noted for Re7 and Pyth but went unaddressed, highlighting the complexities and gaps in accountability within decentralized finance.

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