Hedera Network Suffers $5M Sauce Protocol Hack, HBAR Coin Price Falls

A Sauce Protocol hack on Hedera DeFi led to theft of over $5 million via oracle manipulation, with nearly 6.6 million USDC and 35 million HBAR borrowed before attackers bridged funds to Ethereum using LayerZero. Hedera’s native token HBAR fell about 3-3.5% to around $0.067 as markets reacted. The attacker’s identity remains unknown and Hedera has not issued an official statement. The incident highlights DeFi security risks on Hedera even when the network itself isn’t directly breached.