Morpho Borrow Rates Spike to ~40% as PT Market Liquidity Dries Up

The spike is less about the headline number than about how fast liquidity in a single reUSD-backed market disappeared — a reminder that isolated lending pools can gap violently when collateral or exit routes thin out. The subsequent easing across the tracked markets suggests the dislocation was temporary rather than systemic, but it puts a spotlight on borrowers who depend on stable, available liquidity and on the fragility of markets built around PT-style collateral. Whether these rate swings stay episodic or become a recurring feature of thinner pools is the open question worth watching.