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DeFi exploit wave 2026Update 18 of 24
ETH Leverage Loops and MEV Risks Flagged

Lido stETH Leverage Loops Carry Hidden Liquidation Risk; Ethereum Trader Loses $2M in Single-Block Backrun

AltsJul 8, 2026

A relentless wave of DeFi exploits—spanning smart contracts, bridges, oracles, and MEV bots—is draining hundreds of millions and pushing 2026 toward record hack losses.

Analysis flagged hidden liquidation risk embedded in Lido stETH leverage loop strategies, where cascading liquidations could create DeFi contagion. Separately, an Ethereum trader lost $2 million in a single-block MEV backrun exploit, documenting an on-chain execution risk for active DeFi participants.

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