TechFlow — Lending platform Silo Labs announced on social media that this morning, due to inaccurate wstETH/ETH price reporting from Chainlink on Arbitrum, five positions were liquidated. Fortunately, no bad debt was incurred and Silo continues to operate normally.
Silo Labs stated: Silo's liquidators were the first to detect the liquidations and received the liquidation penalties. They will return these penalties to the affected users.
The issue may have originated from two large transactions on Balancer v2 at 3:00 UTC. Due to the significant size of these trades, Chainlink, as a data provider, likely included them when calculating the Volume-Weighted Average Price (VWAP) on Arbitrum, resulting in a reported price that reflected volume-weighted market conditions at that specific time.
