Lending protocol Bonzo loses 77% of value locked as $9 million oracle exploit rattles Hedera

Incident Overview

Bonzo Lend lost approximately $9.05 million after an attacker exploited a verification flaw in a third-party Supra oracle contract on the Hedera network.

The attacker deposited low-value SAUCE tokens and submitted a manipulated price update to inflate the tokens' value, enabling them to borrow assets well beyond their collateral.

Following the exploit, Hedera's total value locked (TVL) fell by nearly 40% in 24 hours, while Bonzo's TVL plummeted by 77%.

Attack Details

Bonzo Lend, a decentralized lending protocol on the Hedera network, suffered an estimated $9.05 million loss after an attacker exploited a verification flaw in a third-party Supra oracle contract, allowing them to borrow assets far exceeding the value of their collateral.

The attacker deposited 250 SAUCE tokens with little value, before submitting a manipulated price update that inflated the token's HBAR-denominated value, according to a preliminary incident report from Bonzo. The protocol said the account subsequently borrowed:

• 6.63 million USDC
• 34.52 million wrapped HBAR

At the report's reference HBAR price of $0.06998, the two withdrawals were worth approximately $9.05 million.

White-Hat Response

A second wallet, the report adds, borrowed roughly $1 million of additional assets while the abnormal price remained active. The wallet later contacted Bonzo through Discord, identified itself as a white-hat responder to the incident and said it intended to return the funds.

Bonzo excluded those assets from its headline loss estimate, placing total principal borrowed during the incident at approximately $10.06 million before recovery.

Impact on Hedera

Hedera, according to DeFiLlama data, now has $25.7 million in total value locked (TVL). The figure dropped nearly 40% in the last 24 hours after the exploit. With Bonzo's TVL plummeting by 77%, the protocol's losses represent a significant portion of the network's overall DeFi ecosystem.

Broader Market Context

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