$1.01M USDC reportedly drained from an Avalanche-based DeFi vault! A flash loan exploit targeted a Tranche Vault linked to Fence Finance and Valinor Digital. Here's what happened 👇 The attacker reportedly manipulated the vault's share-minting mechanism, creating more vault shares than they should have received. Those shares were then redeemed for the vault's remaining USDC. Around 1.013M USDC was transferred to the attacker's wallet, leaving the affected vault's USDC balance at zero. The incident highlights a critical DeFi risk: flawed vault accounting can open the door to massive losses, even without directly breaking the blockchain itself. Fence Finance and Valinor Digital had not issued a statement at the time of reporting. Another reminder that smart contract security isn't optional. #Avalanche #AVAX #DeFi #CryptoSecurity #USDC