In yet another reminder of DeFi’s fragile underbelly, the Resupply stablecoin protocol has suffered a devastating exploit — over $9 million was drained after a hacker manipulated token prices through a smart contract vulnerability.
The attack, executed with precision, exploited a flaw in the protocol’s price feed logic. This allowed the attacker to inflate collateral values, borrow heavily, and exit before the system could react. Once triggered, the collapse was total:
User funds vanished.
On-chain volume surged as bots scrambled.
Wallets dumped holdings.
Panic gripped the community.
Resupply’s team has since paused the protocol and promised a full post-mortem. But users are already asking the hard question: Will there be compensation? Or is this yet another case of a “sorry, we’re patching the bug” moment in DeFi history?
With confidence in small-cap protocols increasingly fragile, this could mark another turning point in how users assess smart contract risk.
Trust evaporates fast. Rebuilding it? That takes a lot longer.
