Loopscale: Partial lending functionality restored, confirming that the attack involved two paths and user deposits are intact

According to Loopscale monitoring, the platform has restored the priority loan function, and all loans can have additional collateral; except for loans funded by the USDC Genesis Vault, all other loans can be repaid, and borrowers can retrieve their collateral after full repayment. The collateral withdrawal function for loans related to the USDC Genesis Vault remains temporarily closed, and treasury withdrawals and other protocol functions continue to be restricted.

The team is working with partners to advance the security recovery efforts. Loopscale stated that it has identified and controlled two paths exploited by the attackers during this incident. The attackers first exploited a misconfiguration of asset pricing parameters, leading to collateral deposited in the SOL Genesis Vault being incorrectly valued as another asset, resulting in approximately $412,000 in under-collateralized loans. Subsequently, the attackers sold a loan with abnormally high interest rates to the USDC Genesis Vault through atomic transaction combinations, artificially inflating its net asset value (NAV) and extracting approximately $521,000 in redemption funds; this operation was intercepted by the system within 30 seconds after the transaction was generated. Loopscale stated that user deposits will not suffer losses as a result.