Svmuu News: Venus Protocol has released an update on the unusual activity in the THE pool. In addition to the previously suspended THE borrowing and withdrawals, the collateral factors for seven markets—BCH, LTC, UNI, AAVE, FIL, TWT, and lisUSD—have now been reduced to 0. This precautionary measure targets markets where a single user holds an excessively high proportion of collateral; all other markets continue to operate normally. Preliminary analysis indicates the attack method was as follows: Starting in June 2025, the attacker slowly accumulated THE tokens through normal deposit processes, eventually holding 84% of the cap (approximately 12.2 million THE). The hacker then transferred the THE tokens directly into the protocol’s contract, instantly inflating the supply to create a massive collateral pool. Exploiting the extremely low on-chain liquidity of THE combined with delays in the TWAP oracle, the hacker carried out a recursive price manipulation loop: depositing THE, borrowing other assets, using the borrowed assets to buy more THE on-chain, and waiting for the TWAP oracle to update and push prices higher. Venus stated that a full report will be released upon completion of the investigation.