⚠️ALERT: $AAVE is now down -19% today after a $292M Kelp DAO rsETH exploit triggered a full-blown liquidity crisis. Aave's ETH pool just hit 100% utilization. That means one thing: there's almost no ETH left to withdraw. Here's what happened: Attacker drained 116,500 rsETH ($292M) from Kelp DAO's LayerZero bridge He then deposited the stolen rsETH as collateral on Aave V3 to borrow ~$236M in WETH. Because the rsETH is now unbacked, those positions are unliquidatable. Aave is now stuck with ~$280M in bad debt it cannot recover. Panic withdrawals have followed: $5.4 BILLION in $ETH outflows, with Justin Sun pulling 65,584 ETH ($154M) alone. ETH utilization has maxed out at 100%, which means there's almost no ETH left to withdraw. This is the FIRST real-world test of Aave's Umbrella safety module & the BIGGEST DeFi exploit of 2026. This is a developing story.
