second defi exploit of may 2026
for a whopping 0.148 OETH ($350)
congrats to the attacker on making life-changing money with this exploit

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Incident update regarding yield exploitation in our Morpho OETH pool
Today we were notified of a flash loan attack on the OETH Morpho market. The attacker was able to capture a small amount of yield (~0.148 OETH).
No user principal was at risk. We will fully cover the yield lost to the Morpho borrow booster.
Timeline (GMT)
7:30 PM: First alerted to the issue by Dialectic
7:44 PM: Origin team started investigating
8:09 PM: Confirmed as yield theft via flash loan + rebase
9:17 PM: Solution identified and execution began
9:20 PM: Rebases paused
10:08 PM: Fix applied
What happened
The attacker used a flash loan to borrow ~7,557 OETH from the Morpho market, called rebase() to claim yield on the borrowed amount, swapped the earned yield on Curve, and repaid the loan.
First tx: https://t.co/GTJ4xCl6zt
Why this was possible
We’ve always known this was a theoretical risk. However, we intentionally kept rebase() permissionless to maximize decentralization. The growing popularity of our Morpho pool made a meani
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