Meteora suffered a $1.5 million USDC loss in a fake OTC escrow scam while attempting to buy back its $MET token. Scammers deceived the team using a fraudulent escrow setup for an OTC deal. This was not a smart contract exploit but a social engineering attack. The incident was disclosed in Meteora’s Q1 2026 Token Holder Report, where they also mentioned filing a police report. The protocol used $1M USDC for legitimate buybacks separately.