⚠️ALERT: $AAVE is now down -19% today after a $292M Kelp DAO rsETH exploit triggered a full-blown liquidity crisis.



Aave's ETH pool just hit 100% utilization. That means one thing: there's almost no ETH left to withdraw.

Here's what happened:

Attacker drained 116,500 rsETH ($292M) from Kelp DAO's LayerZero bridge

He then deposited the stolen rsETH as collateral on Aave V3 to borrow ~$236M in WETH.

Because the rsETH is now unbacked, those positions are unliquidatable.

Aave is now stuck with ~$280M in bad debt it cannot recover.

Panic withdrawals have followed: $5.4 BILLION in $ETH outflows, with Justin Sun pulling 65,584 ETH ($154M) alone.

ETH utilization has maxed out at 100%, which means there's almost no ETH left to withdraw.

This is the FIRST real-world test of Aave's Umbrella safety module & the BIGGEST DeFi exploit of 2026.

This is a developing story.#GatePreIPOsLaunchesWithSpaceX
AAVE-15,87%
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