An attacker flash loaned USDY tokens, triggering a reentrancy attack during the transfer fallback function. Exchange rate updates executed immediately after borrow operations, allowing the attacker to manipulate rates and liquidate user positions for mETH and WETH.

According to Fuzzland co-founder Chaofan Shou, the cross-chain lending protocol Minterest was attacked. The attacker used a flash loan attack, resulting in a loss of approximately $1.4 million for the protocol.