AAVE Targets $200 After $305,000 FlashLoopAdapter Exploit

AAVE rose 27.6% over the week to about $181 after an exploit involving FlashLoopAdapter, a custom Ethereum module linked to leveraged positions on Aave V3. The incident affected two Safe wallets and caused estimated combined losses of about $305,000.

The exploit occurred on Oct. 1. The attacker used an access-control weakness in FlashLoopAdapter to withdraw collateral from the wallets. In one transaction, the attacker repaid about 1,335 WETH in Aave debt and withdrew approximately 1,306.48 weETH from the first wallet. A second wallet lost about 6.4 weETH.

The attacker later converted some of the assets and retained about 114.1 ETH. Etherscan recorded roughly $3.88 million in gross collateral movement in the first transaction. That figure represents the value of assets withdrawn and does not equal the estimated financial loss.

AAVE traded near $181.06, up 8.49% in 24 hours. Its market capitalization was about $2.79 billion, while daily trading volume exceeded $640 million. The token traded above its 20-day, 50-day, 100-day and 200-day exponential moving averages, which were approximately $150.27, $132.91, $119.04 and $120.31, respectively.

The nearest resistance was $187.28, the token’s latest swing high. A break above that level could bring $190 and then $200 into focus. Support levels stood at $171.56 and $159.21, followed by the $150.54-$150.27 area. A Bollinger %B reading of 1.10 placed AAVE above the upper band, indicating stretched short-term price movement.

Open interest in AAVE derivatives recovered to about $482.72 million on Oct. 2, compared with roughly $200 million to $300 million during August and September. The increase occurred alongside a higher token price, although the data does not show whether long or short positions accounted for most of the activity.

Spot exchange flows turned positive at about $1.77 million on Oct. 2 after a period of net outflows. The figure can reflect token purchases or transfers to exchanges and does not establish the direction of future price movements.

Aave is a decentralized lending protocol that lets users lend and borrow digital assets through smart contracts. FlashLoopAdapter was a separate custom module connected to leveraged Aave V3 positions and Safe wallets. The incident involved the module and did not constitute a reported failure of Aave’s core protocol.