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DeFi exploit wave 2026Update 18 of 26
ETH Leverage Loops and MEV Risks Flagged

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

Unverified — auto-generated summary, not yet reviewedAltsJul 8, 2026

A relentless wave of DeFi exploits—spanning bridge hacks, oracle manipulation, governance attacks, and AI-accelerated vectors—is draining billions and setting record loss milestones across 2026.

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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