Aave Oracle Glitch Causes $27M Liquidations: CAPO Misconfiguration Confirmed

A misconfigured Oracle system in Aave triggered $27 million in forced liquidations on March 10, undervaluing wrapped staked Ether by 2.85% against its actual market rate.According to the post-mortem by Chaos Labs, the CAPO oracle error caused Aave V3 Ethereum Core and Prime instances to apply an exchange rate of roughly 1.1939 wstETH-per-ETH when the live onchain rate was approximately 1.228, enough of a gap to push …