DeFi Protocol More Markets Loses $9.3 Million in Lending Reserve Exploit

DeFi protocol More Markets suffered a security breach that drained approximately $9.3 million in digital assets from one of its lending reserves on Flow EVM, according to security firm Blockaid. The attacker withdrew around 15.5 million Wrapped Flow tokens from the platform’s lending pool in the incident.

Exploit Involved Liquid Staking Token and Borrowing Feature

According to Blockaid, the attacker used a liquid staking token tied to Flow, combined with a lending feature known as efficiency mode, to borrow far more than intended from the reserve. This feature typically increases borrowing capacity for asset pairs expected to move in price together, but in this case, it was leveraged to extract excess funds from the protocol.

August Losses From Crypto Hacks Approach $140 Million

This latest incident brings total losses from cryptocurrency exploits in August to roughly $139.7 million, making it the third-largest month for stolen funds so far in 2026. Despite the sizable figure, it represents a notable decline compared to July’s losses, which topped $250 million.

The exploit follows a separate major incident just a day earlier, when another blockchain network was forced to halt operations after a lending protocol on its platform suffered a $75 million exploit. As of publication, More Markets had not issued a public statement confirming the incident or clarifying whether users experienced direct losses.