An attacker exploited Switchboard’s IOTA guardian-attestation design to replace the signing keys of all 14 production oracles and submit arbitrary IOTA prices. The attacker first inflated IOTA to $10M, allowing 4.94M unbacked VUSD to be minted against 1.027 IOTA, then crashed the reported price to trigger liquidations of healthy positions. By pre-positioning the freshly minted VUSD in Virtue’s Stability Pool, the attacker captured 16.72M IOTA-equivalent of collateral from the manipulated liquidations