Stream Finance Suspends Withdrawals After $93M Loss; DeFi Liquidity Risks Surface

Stream Finance suspended deposits and withdrawals on Nov. 3 following a liquidation event that resulted in approximately $93 million in losses on Oct. 11, the platform announced. An external fund manager's position was liquidated during significant market volatility. The incident exposed liquidity risks across multiple DeFi protocols, with Elixir facing $68 million in exposure and Morpho addressing liquidity shortfalls in certain pools, which the protocol's co-founder said were not system vulnerabilities. Yield-bearing stablecoins saw their largest weekly outflow since the Luna collapse, totaling $1 billion, while Ethena Labs' USDe market cap fell below $9 billion, down roughly 45% over the past month.