Hedera Faces Reported $5M Exploit as Funds Move to Ethereum.

Hedera faces a multi-million-dollar exploit risk as over $5M reportedly moved to Ethereum via LayerZero, with initial hints pointing to a DeFi protocol on Hedera (Bonzo Finance) rather than the core network. Bonzo Lend paused after a collateral-borrow manipulation affecting SAUCE token via an oracle contract. HBAR slumped around 6% to ~$0.067 in the wake of the incident. The situation highlights ongoing DeFi security concerns within Hedera’s ecosystem and potential protocol-level vulnerabilities.