THE token spiked 110% in minutes on centralized exchanges before reversing sharply, as blockchain security firm Lookonchain detailed how an attacker exploited a vulnerability in the Venus Protocol to manipulate the token and leave the lending platform with $2.18 million in irrecoverable debt.
According to Lookonchain's analysis, the hacker executed a coordinated sequence of transactions targeting Venus Protocol's smart contracts, artificially inflating THE's value to extract maximum value from the platform's lending mechanism. THE hit the top of all centralized exchange buy lists at 14:56 Moscow Standard Time before flipping to the top sell list just nine minutes later as the token collapsed from its highs.
The incident underscores persistent risks in decentralized finance protocols where price manipulation vulnerabilities can cascade into substantial losses. Venus Protocol, which operates on the BNB Chain, now carries approximately $2 million in unrecoverable bad debt as a result of the exploit, representing a direct loss to the platform's liquidity reserves and users.