VenusProtocol has released an update on the unusual activity in the THE liquidity pool. In addition to suspending THE borrowing and withdrawals as previously planned, the protocol has reduced the collateral factor (CF) to 0 in seven related markets as a precautionary measure. These seven markets include BCH, LTC, UNI, AAVE, FIL, TWT, and LISUSD. The remaining markets are unaffected and continue to operate normally. Venus's preliminary investigation indicates that the attacker gradually accumulated THE tokens through normal deposit processes starting in June 2025, eventually holding approximately 12.2 million THE, representing about 84% of the token's maximum supply. The attacker then transferred a large amount of THE into the protocol contract to increase the collateral size and manipulated the price through recursive loops: depositing THE as collateral to borrow other assets, then using the borrowed assets to buy more THE on-chain, waiting for the TWAP oracle to update and drive up the price. Venus stated that the investigation is ongoing and a full report will be released after the investigation is completed.