⚠️ Ostium reveals $23.75M exploit originated from off-chain breach @Ostium confirmed that the July 15 security incident, which resulted in the loss of 23.75 million USDC from its public OLP vault, originated from a breach in its off-chain infrastructure rather than a vulnerability in its smart contracts or multisig systems. According to the protocol’s post-mortem analysis, the attacker gained unauthorized access to off-chain systems and used that access to submit fraudulent BTC-USD price reports, generating artificial trading profits against the vault. The attacker reportedly tested the method first with a 100 USDC position, generating approximately 897.8 USDC in artificial gains before executing larger operations. Multiple subsequent cycles ultimately drained a total of 23.75 million USDC from the OLP vault. Ostium said its automated monitoring systems detected suspicious activity and prevented additional withdrawals. The protocol has since migrated to a new production environment with enhanced security controls, while trading resumed on July 23. The team stated that trader collateral and user margins remained intact within the protocol’s trading contracts throughout the incident. A recovery plan for affected liquidity providers is currently being prepared. The case highlights that DeFi security extends beyond on-chain code: external infrastructure, data feeds and operational systems remain critical risk points for decentralized protocols.