The exploit started, researchers say, with a $280 million flash loan taken in USDC. Of that amount, roughly $170 million went toward distorting data from the MachineShareOracle, which sets values for the targeted liquidity pool. With prices artificially raised, trades worth around $110 million passed through the system - leaving over 1,000 ETH missing afterward. What happened fits a known pattern: manipulating value via temporary shifts in market depth. Since Makina's setup depended on immediate price points, sudden influxes of borrowed funds were enough to warp them. Inserting capital, pushing valuations up, then pulling assets out while gains lasted exposed a flaw built into how prices are calculated.
Even though the exploit worked, the hacker did not receive most of the stolen money. A different actor, an MEV builder, stepped in ahead during the draining transaction and took nearly all the ETH pulled out. According to PeckShield, this twist could make getting back the assets more likely. Yet, there has been no public word from Makina on whether they have reached out to - or even found - the MEV searcher responsible.
After reviewing what happened, Makina explained the vulnerability only touched its DUSD–DUSDC Curve pool, leaving everything else untouched. Security measures kicked in across all Machines - its smart vault network - as checks continue into how deep the effects go. To stay safe, users putting liquidity in that specific pool got a heads-up to pull out whatever they had left. More details will come once the team learns more through their ongoing review.
Not long ago, flash loan attacks started showing up more often in DeFi. By October, the Bunni exchange closed for good following one such incident - $8.4 million vanished fast. Its team said restarting safely would mean spending too much on checks and oversight. Just weeks before, another hit struck Shibarium, a layer-two system. That breach pulled out $2.4 million in value almost instantly.
Even so, wider trends hint at slow progress. Chainalysis notes that losses tied to DeFi stayed modest in 2025, though value held in decentralized systems climbed back near earlier peaks. Despite lingering dangers from flash loans, safeguards within the space seem to be growing more resilient over time.
