Polkadot treasury lost 1.38 million USD due to the XCM patch not being deployed to the production environment

Polkadot's treasury lost approximately 1.38 million dollars due to a failure to synchronize an XCM patch to the production environment. The defect in the patch caused a pricing deviation in the DOT/dotUSD trading pool, resulting in a loss of treasury funds.

Subsequently, Polkadot fixed the accounting issue of the dotUSD stablecoin supply through a network upgrade, which did not change the holders' balances.