A Morpho user on Base suffered a large loss on a cbETH/WETH loan after an issue in how the protocol ingested Pyth Network’s cbETH price feeds briefly distorted the collateral ratio and triggered liquidations. According to Morpho’s post‑mortem, on March 2, 2025, a timing mismatch between two Pyth push feeds (ETH/USD and cbETH/USD) used in the cbETH/WETH market caused a short‑lived skew in the cbETH/ETH rate, leading to three positions being liquidated for a total of about 14 ETH, roughly $33,000 at the time. The affected user later described the event on public forums as a case of “easily manipulated” cbETH pricing, but Morpho’s investigation concluded it was not an oracle manipulation attack; instead, the problem came from asynchronous updates and the market’s very high 94.5% loan‑to‑liquidation threshold, which made positions extremely sensitive to even small temporary price inconsistencies. The incident highlights the operational complexity and shared responsibility in DeFi lending that relies on external oracles. Pyth normally provides pull‑based price feeds, but this Morpho market relied on a custom push‑update setup and off‑chain scheduler, with no guarantee that both ETH and cbETH prices would update simultaneously or that timestamps would be checked for alignment. The resulting split‑second discrepancy was enough to flip healthy loans into liquidation territory. In response, Morpho and Pyth committed to improving their integration, including tighter and better‑coordinated update scheduling, enhanced monitoring for delayed or out‑of‑sync data, and more robust tooling tailored to lending use cases, while emphasizing that the issue was localized to this cbETH/WETH market and did not indicate broader systemic failure.

✨ AI-generated background, compiled from web sources — not editorial content.

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