April 7, 2026·Bearish·critical issue

Chaos Labs Oracle Glitch Triggers $25M Aave Liquidations

Chaos Labs, an Aave risk oracle provider, allegedly misconfigured a CAPO oracle, resulting in $25 million (10,938 wstETH) in false liquidations on the Aave protocol. Following this incident, Chaos Labs reportedly proposed to Aave to become the exclusive oracle provider and requested $8 million.

Detected & updated continuously · Source: Ruma

Mentioned

Aave (aave)

Wrapped stETH (wsteth)

Sources

@ChainLinkGod

So let me get this straight @chaoslabs screws up a risk oracle CAPO config for Aave and causes $25M (10,938 wstETH) in false liquidations Then Chaos goes to Aave and asks for $8M and to become the exclusive price oracle provider (push out Chainlink), the exclusive risk manager https://t.co/orttMgbak2