Sure enough, it’s a makeshift operation. Yesterday, ETH’s hottest token, $LOOP, peaked at $6.5M—today, it was drained, crashing to $1.2M. A guy bought $LOOP in the USDC pool to pump its price, then dumped large amounts of $LOOP in the main pool, triggering liquidations. After the liquidations, $LOOP’s price collapsed, allowing the attacker to buy it back at a low price to repay the loan and pocket the spread. He made $3.4M. While the profit isn’t enormous and there was no exploit or vulnerability—the contract was simply designed this way—anyone could have done it. After reviewing it closely, the LOOP lending protocol is poorly designed. The oracle uses Uniswap V4’s current spot price directly, the liquidation threshold is too low (LTV at only 40%), and there’s no slippage protection. All an attacker needs to do is dump a large amount of $LOOP in the pool to crush the price below the liquidation line, triggering a fire sale of borrowers’ collateral—and turn the protocol into an ATM.