According to CoinDesk, the algorithmic stablecoin Balance Coin was subjected to an oracle price manipulation attack on July 22, causing its price to plummet from near its $1 peg to approximately $0.0014—a decline of over 99%—reducing its nominal market capitalization of around $3.5 million to nearly zero. According to analysis by security firm SlowMist, the attacker injected artificially low Bitcoin prices into the protocol, bypassing price sanity checks and liquidation delay mechanisms. This allowed them to batch-forced liquidate multiple collateral vaults that did not meet liquidation criteria in a single transaction, then convert the seized collateral for arbitrage profit, ultimately gaining approximately $912,000 from the protocol’s governance entity, 42DAO.
Algorithmic Stablecoin Balance Coin Drops 99% Following Oracle Attack
TechFlowShare
Summary
The algorithmic stablecoin Balance Coin crashed 99% following an oracle attack on July 22, 2026, with Bitcoin’s price manipulated to trigger forced liquidations. The attacker exploited flawed price validation to liquidate liquidity pools and siphon $912,000 from 42DAO. Altcoins under observation may face renewed scrutiny as oracle vulnerabilities come under increased focus. Security firm SlowMist confirmed the exploit involved abnormally low Bitcoin prices submitted in a single transaction.
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