On March 12, 2020, Black Thursday, a single bot was able to acquire $8.32 million worth of Ethereum (ETH) for free in just 40 minutes, exposing a critical flaw in MakerDAO's liquidation system. The protocol's design is based on continuous market participation, but when Ethereum plummeted 43% and network congestion caused other Keeper bots to fail, one bot was able to bid 0 DAI at auction and successfully acquire collateral. This event resulted in MakerDAO incurring $4.5 million in bad debt, forcing MKR token dilution, and fundamentally reshaping the risk design of all subsequent mainstream DeFi protocols.

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