Andre Cronje, co-founder of Sonic Labs and founder of Flying Tulip, stated on the X platform that his team is continuously investigating the L0/rsETH incident. Preliminary reports indicate that approximately $200 million worth of rsETH was stolen, possibly due to a private key leak or misconfiguration. These assets were subsequently deposited into Aave as collateral for ETH lending (due to insufficient rsETH liquidity). Cronje pointed out that the affected positions are technically still collateralized, but in the event of bad debts, Aave's token mechanism and security modules will act as the first line of defense to absorb the risk. However, Aave does not have a mechanism to compensate users for losses; otherwise, it could trigger a run on the platform. Currently, Aave holds approximately $7 billion worth of ETH and has about $100 million in withdrawals, so the overall impact of this incident is limited. Furthermore, prioritizing user liquidity, Flying Tulip has withdrawn all ETH from Aave to its fund management contract. This action was taken because Aave's available liquidity had fallen below its set minimum threshold.