DeFi lending protocol Moonwell issued an official statement regarding the $1.78 million in bad debt caused by an oracle configuration error. The statement confirmed that a serious error in an oracle configuration caused the system to calculate the cbETH price incorrectly, using only the cbETH/ETH exchange rate instead of the expected price. This resulted in a cbETH price of approximately $1.12 instead of the true market price of approximately $2200. The erroneous price triggered a liquidation bot to liquidate cbETH collateralized positions. The attacker only needed to repay approximately $1 of debt to liquidate 1 cbETH, leading to the liquidation of a large number of borrowers' collateral and creating substantial bad debt. A small number of users also exploited the abnormal pricing to borrow large amounts of cbETH with extremely low collateral, artificially amplifying the protocol's bad debt. Ultimately, a total of 1096,317 cbETH was liquidated, most of which was bad debt denominated in cbETH. Because oracle repair requires a five-day governance vote and time-lock process, liquidation continues during this period. A related governance proposal for repair is currently planned for release.