Bonzo Exploit Drains $9M From Hedera's Largest Lending Protocol

Hedera faced a major DeFi stress test as Bonzo, the network’s largest lending protocol, reported a 9.05 million loss from an oracle manipulation attack on July 11. The breach exploited Supra’s signature verification, feeding distorted SAUCE prices to trigger oversized borrows. Bonzo paused operations and is pursuing recovery without a timeline for user compensation. The incident highlights Hedera’s still-maturing DeFi scene, single-oracle risks, and the need for multi-source price data to bolster security and user trust.