DeFi lending protocol Moonwell suffered approximately $1.78 million in bad debt due to an oracle misconfiguration. After enabling Chainlink's OEV wrapper contract via governance proposal MIP-X43 on February 15th, Moonwell experienced a serious misconfiguration of its cbETH price oracle, which at one point valued the currency at only $1. On-chain trading bots and liquidators acted swiftly, seizing cbETH collateral by repaying approximately $1 of debt. This misconfiguration resulted in the liquidation of 1096.317 cbETH, wiping out the vast majority of collateral for many borrowers and leaving the protocol with a significant amount of bad debt. The Moonwell team immediately reduced the cbETH borrowing and supply caps to 0.01 after discovering the issue to limit further losses, but the official team has declined to comment further on the source of the error or details of the vulnerability.