Kava Lend Exploit Drains Millions as KAVA Falls 47%

The mechanics matter more than the headline loss: collateral inflation against BUSD let the attacker borrow far beyond what the position should have supported, which points to an oracle or pricing weakness rather than a brute-force contract break. The 47% KAVA move reflects how thin the token's market depth is relative to the size of the drain, and the suspension of bridge withdrawals and transfers at three Korean exchanges shows how quickly regional venues ring-fence exposure when a native token is compromised. Whether the protocol's remaining collateral and bad-debt position can be resolved without further contagion is the open question.