DeFi Titan, a major decentralized finance protocol, experienced a $200 million theft in November 2025 due to a reentrancy vulnerability in its smart contract. This incident has highlighted significant security weaknesses within the DeFi ecosystem, including the reliance on complex smart contracts and inadequate security audits. The breach has led to widespread panic selling and increased regulatory scrutiny, prompting calls for stricter compliance measures. The DeFi community is now focusing on enhancing security and transparency, as it reassesses the balance between innovation and safety in decentralized finance.