A minor settings mismatch in Aave’s pricing system briefly made a popular token look cheaper than it actually was, and that was enough to wipe out $26 million in user positions. The affected token was Wrapped stETH (wstETH), a yield-bearing asset commonly used as collateral on the Aave lending platform. How a Pricing Glitch Triggered Millions in Forced Sells Aave, like most lending protocols, relies on price feeds to determine whether a borrower’s collateral is sufficient to cover their loans. When collateral’s value declines, the protocol automatically liquidates positions to protect lenders
source: https://beincrypto.com/aave-oracle-wsteth-liquidation-capo-misconfiguration/