Fluid has confirmed that a $21 million bad debt resulting from an exploit involving Resolv has been fully covered. The incident, which occurred on March 22, 2026, was detailed in a postmortem by Resolv, explaining the exploit and subsequent actions taken. Fluid's announcement is significant as it assures users that the shortfall has been resolved, mitigating immediate risks and maintaining confidence in the protocol's solvency. The exploit did not stem from Fluid's own contracts but from its integration with Resolv, highlighting the interconnected risks within DeFi protocols. By addressing the debt, Fluid aims to prevent potential cascading effects in the lending markets. The resolution serves as a case study in managing exploit-related bad debt, though details on how the coverage was achieved remain undisclosed.