DeFi lending platform Moonwell is investigating a price misreport affecting its wrsETH market, leading to concerns of another major security breach. The incident involved an oracle error that temporarily distorted the price of wrapped restaked Ethereum (wrsETH) data, causing automated systems to register abnormal valuations. This triggered fears of a large-scale DeFi exploit reminiscent of recent incidents. However, Moonwell asserts that this wasn’t an active exploit but rather a misreported price, stemming from an oracle error. The platform has implemented immediate measures to address the issue: freezing affected pools and significantly reducing borrow caps for wrsETH on both Base and OP Mainnet. While Moonwell confirms there were no lost funds, independent researcher @SpecterAnalyst suggests the attacker exploited both the initial incident and today’s event, taking over $2 million in total. The incident highlights the vulnerability of automated systems in DeFi to data discrepancies, especially for wrsETH which is widely used across different platforms. Moonwell is working with security researchers to investigate the root cause of the price misreporting and will publish a full report detailing the investigation findings.