Balance’s stablecoin fell 99% after an exploit drained about $1 million from its bitcoin vaults, according to CoinDesk. The report said the attacker fed the lending system a fake bitcoin price that was abnormally low, which allowed vaults that should have remained safe to be liquidated. The attacker then captured the price difference in a single transaction. CoinDesk’s report was written by Shaurya Malwa and edited by Jamie Crawley. It was published on July 22, 2026. The incident centered on the protocol’s lending system and its bitcoin-backed vault structure, with the manipulated price feeding directly into liquidations that should not have happened under normal conditions.
Balance’s stablecoin collapsed 99% after an exploit drained about $1 million from its bitcoin vaults, according to CoinDesk.
How the attack worked
CoinDesk reported that the attacker supplied the lending system with a fake bitcoin price that was abnormally low. That let the attacker liquidate vaults that should have remained safe and keep the difference, all in a single transaction.
Impact on the protocol
The exploit drained the protocol’s bitcoin vaults of about $1 million. After that, the Balance stablecoin fell 99%.
The article was written by Shaurya Malwa and edited by Jamie Crawley. CoinDesk published it on July 22, 2026.
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