A vulnerability in KelpDAO led to a $290 million loss, highlighting indirect risks for NFT holders using shared wallets. The attack exploited a configuration flaw, allowing false transaction confirmations, which triggered a DeFi liquidity shock. Although NFTs were not directly targeted, the incident underscores the interconnectedness of DeFi systems and the potential for collateral damage. The hack caused a 17% drop in AAVE's price and a significant decline in its total value locked, as rsETH collateral became unstable. This instability led to bad debts and liquidity loss, emphasizing the need for NFT holders to adopt better wallet hygiene. Simple practices like revoking unused smart contract approvals and separating high-value NFTs into dedicated wallets can mitigate risks, but are often overlooked until it's too late.