A 2.85% pricing error in the valuation of wrapped staked Ether (wstETH) collateral led to approximately $27 million in liquidations on the Aave lending protocol. The discrepancy arose when Aave's system temporarily valued wstETH at 1.19 ETH instead of its market value of around 1.23 ETH, causing some borrowing positions to appear undercollateralized and triggering automated liquidations. The root cause was identified as a misconfiguration in Aave's CAPO risk oracle system, which imposed an outdated cap on the token's exchange rate. Despite the significant liquidations, Aave incurred no bad debt, and the protocol's core risk mechanisms functioned as intended. Aave governance has proposed compensating affected users through refunds supported by the DAO treasury, highlighting the importance of robust oracle configurations in DeFi systems.