Analysis: It is suspected that an address that received 7400 ETH from Tornado orchestrated the CAKE and THE collateral liquidation event.

According to on-chain analyst Ember, an address (hacker?) that received 7,400 ETH from Tornado orchestrated tonight's collateral liquidation event for CAKE and THE, resulting in a liquidation shortfall of approximately $2.15 million for Venus (1.18 million CAKE + 1.84 million THE). The hacker, meanwhile, obtained approximately $5.07 million from Venus (2,172 BNB + 1.516 million CAKE + 20 BTC): 1. The address first received 7,400 ETH from Tornado via address 0x7a7...234, then deposited it into Aave to secure a collateralized loan of 9.92 million USDT (including USDT, DAI, and USDC), which was then transferred to multiple wallets to purchase THE. 2. Around 8 PM tonight, the hacker likely manipulated the price of THE on the CEX (presumably having previously placed long orders). He then deposited 36.1 million THE tokens into Venus through two wallets, borrowing assets such as BTC, BNB, and CAKE. Three to four minutes later, the price of THE plummeted (likely due to his closing long positions and opening short positions), his collateral on Venus was liquidated, further pushing the price of THE down. Ultimately, all collateral in both wallets was liquidated, but approximately $2.15 million (1.18 million CAKE + 1.84 million THE) remained unpaid, becoming a deficit on Venus. In total, he borrowed 9.92 million USDT, but the assets borrowed from Venus were only worth $5.07 million USD. While this doesn't appear profitable on-chain, it's speculated that he manipulated the price drop of THE through on-chain liquidation to profit from his CEX positions.