Loopscale paused protocol activity on Nov 5, 2026 after what it called a sustained attack campaign that escalated against its SOL and USDC Genesis Vaults.

Loopscale paused protocol activity on Nov 5, 2026 after what it called a sustained attack campaign that escalated against its SOL and USDC Genesis Vaults.

The team says the affected vaults were made whole and user deposits took no loss, but repayment functionality was still awaiting restoration, with no completed liquidations from the pause reported. It said it is working with federal law enforcement and security professionals.

How it was done is still unresolved in the official disclosure, which cites malicious API traffic over the prior week without attributing it to an oracle failure. Unofficial reports cited in Telegram describe an oracle exploit where about $123 of kySOL was deposited labeled as 10 zBTC, priced as 10 zBTC collateral to borrow SOL, creating a roughly $431K bad loan that was quietly repaid, plus a questioned $520K USDC withdrawal.

Borrowers were still waiting for repayments to resume at the time of the DefiPrime report.