What happened
On July 15, 2026, Cascade reported an exploit of its Collaborative Liquidity Strategy vault on Arbitrum that withdrew approximately $1.34 million in USDC; trading and withdrawals were paused.
The CLS design allowed attacker-controlled positions in thin markets to move the mark price enough to trigger liquidation and close-out of the opposing vault positions, converting the manipulated mark into attacker profit.
How it happened
Attackers accumulated long positions in thin-liquidity markets while the CLS vault held the short side, pushed the mark price upward, and profited when the vault’s positions were liquidated and auto-deleveraged.
Protocol details
Evidence
Understand the attack patterns
Build your security review skills
Work through hands-on labs covering real exploit mechanics, review techniques, and defensive patterns.
