A deprecated side contract (V2 rewards contract) tied to Scallop’s sSUI Spool rewards pool was exploited. The attacker exploited a missing validation in the reward accumulator logic (uninitialized variable in update_points function). By staking a small amount (0.2 SUI), they generated massive fake reward points (162 trillion), draining the entire leftover rewards pool of approximately 150,000 SUI. Core lending markets, user deposits, and active pools were unaffected. The team promptly froze the affected contract, committed to covering 100% of the loss from treasury, and resumed normal operations.