Aave Faces Liquidity Crunch After $292M rsETH Exploit Drains ETH Pool

TLDR: A $292M rsETH exploit enabled massive borrowing on Aave, leaving the protocol with unbacked collateral exposure. Aave’s ETH pool reached full utilization, restricting withdrawals as panic-driven outflows exceeded $5.4 billion. Technical indicators show AAVE weakening after rejection near $120, with momentum still favoring downside pressure. Critical support near $90 remains under watch as markets [...]

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