Silo's soUSDC vault was exploited through an immutable oracle that priced wstUSR at 1.133 while market price had collapsed to 0.12, combined with accounting flaws that didn't mint shares for external deposits, allowing attackers to inflate redemption payouts.

The attacker exploited a Misconfigured Oracle Exploit in combination with protocol logic issues to launch an attack against the Silo V2 contracts on Arbitrum. The incident involved price manipulation or configuration flaws in the oracle mechanism, which ultimately enabled unauthorized fund extraction. This was a relatively small-scale incident affecting Silo Finance V2, with limited impact on core user funds. Similar to other cases, the affected contracts were likely peripheral or experimental components rather than the core protocol. Following the attack, the stolen funds were obfuscated through mixers and/or cross-chain bridges. Although Silo Finance has undergone audits, newly introduced features or misconfigurations can still introduce potential risks.