It seems some folks still don't quite understand what happened.

Simply put, it appears the attacker controlled a large amount of $THE , then exploited a vulnerability in Venus Protocol that allows collateralizing $THE to borrow hard currency. They then pumped $THE on the market—since there wasn't much liquidity, a small amount of money was enough to do it.

Venus's oracle reads on-chain prices, so instantly the $THE they deposited became very valuable. Then they went crazy borrowing out BTC, Cake, BNB and other assets.

After that, they crashed the $THE price, causing themselves to become insolvent. But it didn't matter—they had already exchanged trash for real value.

Venus had no choice but to take the loss as a bad debt directly, and the system slowly sells THE to liquidate the position.