Aave V3 oracle misconfiguration on March 10-12, 2026 caused ~$862K in losses. Chaos Labs' CAPO system reported wstETH at 1.1939 instead of 1.228, triggering liquidations of 34 otherwise-healthy E-Mode positions due to inconsistent snapshot configuration.

Aave V3 suffered a CAPO (Capped Asset Price Oracle) misconfiguration by Chaos Labs, which undervalued wstETH by ~2.85%. This triggered wrongful liquidations on 34 healthy positions, resulting in ~$862,000 in losses. Aave DAO fully compensated affected users; no protocol funds were stolen.