$1.78M 'Vibe-Coded' Oracle Bug Puts AI-Coauthored Contracts Under Scrutiny
2026-02-18
Cointelegraph
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The Moonwell DeFi protocol suffered a $1.78 million loss after an AI system, Claude Opus 4.6, co-authored faulty code for a price oracle. The misconfiguration led to cbETH being drastically undervalued, triggering mass liquidations and significant financial harm to users and the protocol.[AI generated]
Why's our monitor labelling this an incident or hazard?
The event involves an AI system explicitly mentioned as co-authoring the smart contract code that contained a critical bug leading to a significant financial loss. The harm (financial loss) has already occurred, and the AI's involvement in the development process is a contributing factor to the vulnerability. Although the flaw could have been made by a human developer, the AI-assisted coding played a role in the incident. Therefore, this qualifies as an AI Incident due to the realized harm caused by the AI system's involvement in the development and deployment of the vulnerable contract.[AI generated]