Scallop Protocol Suffers $142K Oracle Manipulation Exploit, SUI Shows Resilience

SUI News - Scallop Protocol experienced a $142,000 flash loan attack on Sunday, exploiting deprecated contract code linked to its sSUI rewards pool. The attacker manipulated custom oracle price feeds to artificially depress SUI/USDC rates, borrowing assets at distorted prices before repaying the loan within the same transaction. Unlike typical DeFi exploits, this attack targeted an outdated V2 contract from November 2023 that remained callable on Sui's immutable blockchain. Analysts note the precision of the execution, which avoided active protocol components. Scallop's team confirmed core contracts and user deposits remain secure. SUI's market price showed remarkable resilience, climbing 2% post-incident. The event highlights persistent risks in DeFi's architectural legacy systems, where deprecated but accessible contracts create hidden attack vectors. As a bullish cryptocurrency practitioner, I view this as a positive learning opportunity for the Sui ecosystem, demonstrating its ability to absorb shocks without systemic disruption.