42DAO's Balance Coin collapsed from $1 to $0.0012 on July 22, 2026 when attacker fed a fake low BTCB price to the oracle via the Spotter module. The oracle lacked drawdown limits and price floors, triggering liquidations of BTCB vaults at far-below-market prices.

The 42DAO protocol was exploited. The attacker manipulated the Median Oracle with an abnormally low BTCB price, triggering forced liquidations of multiple BTCB vaults and profiting approximately $915,000. This caused its algorithmic stablecoin Balance Coin (BLC) to crash over 99% from near $1 to about $0.001.