Partial lending functionality restored, Loopscale confirms attack involved two paths and user deposits are unaffected

Odaily reports: According to Loopscale monitoring, the platform has restored priority lending functionality, and all loans can have collateral added; except for loans funded by the USDC Genesis Vault, all other loans can be repaid, and borrowers can retrieve their collateral after full repayment. The collateral withdrawal function for USDC Genesis Vault-related loans remains temporarily closed, and vault withdrawals and other protocol functions continue to be restricted. The team is working with partners to advance security recovery efforts. Loopscale stated that it has identified and contained the two paths exploited by the attacker in this incident. The attacker first exploited a misconfiguration of asset pricing parameters, causing collateral deposited in the SOL Genesis Vault to be incorrectly valued as another asset, thereby obtaining an undercollateralized loan of approximately $412,000. Subsequently, the attacker used an atomic transaction combination to sell a loan with an abnormally high interest rate to the USDC Genesis Vault, artificially inflating its net asset value (NAV), and extracted approximately $521,000 in redemption funds; this operation was intercepted by the system within 30 seconds after the transaction was generated. Loopscale stated that user deposits will not suffer losses as a result.