Is DeFi actually broken? Here’s what happened in the last 24hrs: After a $292 million exploit hit Kelp DAO’s rsETH, things unraveled fast while users rushed to pull their funds across DeFi protocols. The root issue was a broken cross chain setup, showing how one weak link can ripple through multiple protocols. On Aave, liquidity got so tight that withdrawals slowed down, showing how quickly stress in one protocol can spill into others. This is what people mean by contagion, one failure hitting multiple platforms at once. Traders and developers are now warning that cross-chain setups and shared collateral can turn small cracks into system-wide problems. The reaction says a lot, users are not waiting around anymore when risk shows up. DeFi is not dead, but moments like this expose how fragile parts of the system still are under pressure.