Secured Finance Lending Market Suffers $104,000 Attack on September 5

Secured Finance's lending market was attacked on September 5, resulting in losses of about $104,000. According to Foresight News, the issue stemmed from collateral being priced at the current block's order book average execution price, which allowed an attacker to use self-trading to influence the price and make fake borrowing positions appear as valid collateral. The attacker initially deployed a contract but did not execute immediately, then used a flash loan and self-trading to push up pricing and withdraw USDC. When the original attack wallet tried to act, the transaction reverted because of insufficient gas fees. About 48 seconds later, a general front-running bot named coffeebabe took about 0.9 WBTC and transferred about 28.8 ETH to an ultra sound money builder, keeping only about $29. Another bot later took additional USDC.