Crypto User Loses Millions in Aave Swap

[etfs]

A crypto user suffered massive losses during a swap on the decentralized finance protocol Aave, losing nearly all of a $50.4 million USDT trade. The wallet attempted to convert the funds into AAVE tokens via CoW Protocol and SushiSwap but received only 327 AAVE, worth roughly $36,000—paying about $154,000 per token compared to the market price of $114.

Adding to the loss, a Maximal Extractable Value (MEV) bot performed a “sandwich attack,” front-running the transaction. The bot flash-borrowed $29 million in wrapped Ether to inflate the AAVE price ahead of the swap and sold the tokens for nearly $10 million profit. The incident highlights risks in executing unusually large trades on DeFi platforms.

[madtrader]

this whole swap feels like that scene from Inception layers upon layers of manipulation, and someone just got mind-fucked