HBAR Slides as Hedera Protocol Suffers $9m Exploit via Oracle Flaw
Hedera (HBAR) dived 3% over 24 hours to $0.0681, underperforming a nearly flat broader market, primarily due to a major exploit in its DeFi ecosystem that drained over $9 million and shattered user confidence.
Investors reacted negatively after a $9.05 million oracle exploit on the Bonzo Lend protocol, causing Hedera’s total value locked (TVL) to plummet by nearly 40%.
A hacker exploited a verification flaw in a third-party Supra oracle on July 11, manipulating SAUCE token prices to drain approximately $9.05 million from the Hedera-based lending protocol Bonzo Lend.
This caused Hedera’s total value locked (TVL) to drop nearly 40% in 24 hours, directly damaging the network’s utility and investor trust. The attack is a direct, high-impact hit to Hedera’s DeFi ecosystem, triggering a sell-off as users withdrew funds and lost confidence.
Updates from the Bonzo Lend team on recovery efforts and whether the white-hat responder returns the additional $1 million in borrowed assets. HBAR moved in the same direction as Bitcoin (down 0.18%), but its decline was more than five times as large, indicating it lacked defensive strength.
Technically, the price is trading below all its key moving averages. The broader market offered no support, and HBAR’s chart structure is weak, confirming the bearish momentum following the exploit.
The immediate driver is the aftermath of the exploit. The key level to watch is the recent swing low at $0.0667. If HBAR can hold above this level as the news cycle cools, it may attempt to consolidate.
However, the sharp drop in trading volume (-45.96%) suggests thinning liquidity, which can lead to volatile, exaggerated moves.
The trend is bearish, but deeply oversold conditions could lead to a short-term stabilisation if panic selling abates. A sustained break below $0.0667, which would indicate the sell-off is continuing, could target the next Fibonacci extension level near $0.063.
HBAR’s price is weighed down by the direct impact of a major ecosystem exploit and weak technicals. While oversold, the primary catalyst has significantly damaged near-term sentiment.
