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Crypto Security & DeFi Exploit News
A lending reserve on Flow EVM-based protocol More Markets was drained of approximately $9.3 million on Aug. 31, according to Web3 security platform Blockaid. The firm said the attacker extracted around 15.5 million Wrapped Flow (WFLOW) tokens from the mFlowWFLOW reserve.
Blockaid disclosed the incident in a post on X, sharing blockchain data to support its findings. The firm said the attacker used Ankr Staked FLOW (ankrFLOW), a liquid staking token, in combination with E-mode to overborrow from the reserve.
E-mode, or efficiency mode, is an Aave V3 feature that raises borrowing power for assets whose prices are expected to move in tandem, such as a liquid staking token and the underlying asset it represents. By pairing ankrFLOW with E-mode, the attacker was able to borrow beyond what standard collateral limits would have allowed.
August Hack Losses Climb to $139.7M
The More Markets incident pushed total losses from cryptocurrency exploits in August to $139.7 million, making it the third-largest month by value stolen in 2026 so far however, still well below the $254 million stolen across all hacks in July
The Flow EVM exploit follows a separate incident on Aug. 30 in which the Cronos blockchain was halted after an attacker drained an estimated $75 million from decentralized lending protocol Tectonic.
Related Article: Term Finance Loses $8.5M After Attacker Seizes Vault Governance
Protocol Yet To Confirm the Incident
More Markets had not publicly acknowledged the exploit or addressed whether affected users would be compensated at the time of publication. Cointelegraph said it contacted Blockaid for further details but did not receive a response, and was unable to reach More Markets for comment.
The attack adds to a growing list of exploits targeting DeFi lending protocols that use liquid staking tokens as collateral. E-mode configurations, while designed to improve capital efficiency, can introduce additional risk when the price relationship between paired assets breaks down or when the collateral token has thin liquidity.
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