Aave oracle misconfiguration on March 10 leads to $26 million in wstETH liquidations

On March 10, DeFi platform Aave faced a temporary oracle issue on its Ethereum Core and Prime deployments that triggered about $26 million in unfair wstETH liquidations across 34 accounts. The malfunction was linked to a misconfigured Correlated Asset Price Oracle that applied an incorrect capped exchange rate, and a compensation plan involving 141.5 ETH recovered plus up to 345 ETH from the DAO treasury is being prepared for affected users.