A significant oracle failure led to a $19.3 billion loss in the cryptocurrency market on October 10-11, 2025. The incident was triggered by a $60 million market sell-off, exploiting vulnerabilities in oracle systems that rely heavily on manipulable spot prices. This failure resulted in mass liquidations, infrastructure overload, and a liquidity vacuum.
The attack mirrored a pattern first seen in 2020, with similar vulnerabilities exploited in past incidents involving bZx, Harvest Finance, and Mango Markets. Analysts pointed out that centralized price sources, lack of redundancy, and predictable updates in oracle systems were key factors in the failure. The 2025 event magnified losses by 322 times the initial manipulation cost, underscoring critical design flaws in current oracle mechanisms.
Oracle Failure Causes $19.3 Billion Loss in Crypto Market Crash
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