DeFi Liquidations Surge as Chainlink Oracle Glitch Impacts Avalanche

A price feed malfunction impacting Chainlink’s oracle network has triggered over $500,000 in forced liquidations on the Avalanche blockchain, highlighting the risks associated with leveraged DeFi platforms. The incident occurred on May 29th when deUSD stablecoin prices were misreported, leading to collateral liquidation events on Euler Finance. Elixir, a key player within this incident, faces significant financial losses following the disruption of its deUSD price feed. While Chainlink has yet to issue statements regarding the technical failure, users are already questioning the reliability of decentralized finance solutions in light of this recent event.