Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit

cointelegraph.com:

A mismatch in the reported price of underlying assets on synthetic assets DeFi platform Mirror Protocol has caused an ongoing exploit that has the potential to drain all of its funds.

The exploit was observed on May 29 by governance participant ‘Mirroruser’ on the protocol’s forum. As of the time of writing, the mBTC, mDOT, mETH, and mGLXY synthetic asset pools on the protocol have lost almost all of their assets valued at over $2 million.

Mirror allows trading of synthetic assets, such as stocks and cryptocurrency on the Terra and Terra Classic layer-1 blockchains, BNB Chain (BNB), and Ethereum (ETH).

A pricing error for Luna Classic (LUNC) made the exploit possible. The remaining validators on Terra Classic reported that the price of LUNC ($0.000122) was the same as the newly launched LUNA ($9.32) even though their real market prices vary wildly according to CoinGecko.

Chainlink community ambassador ‘ChainLinkGod’ explained on May 31 that the “Terra Classic validators were running an outdated version of the oracle software.”

.@mirror_protocol has just been exploited again due to Terra Classic validators reporting the price of the new Terra 2.0 $LUNA coin (~$9.80) instead of the original Terra Classic $LUNC coin (~$0.0001)This is a massive operations failurehttps://t.co/hO0M0UFBYq https://t.co/ygbr3ij4iS pic.twitter.com/PO0huxX8oQ

Venus Protocol and Blizz Finance each suffered from a similar exploit in May when price oracle Chainlink’s reported LUNA price remained at $0.10 while the market price ran far below that. Blizz Finance was entirely drained while Venus lost $11.2 million.

Terra community whistleblower on Twitter, pseudonymous ‘FatMan’, warned that the Mirror exploit will affect the other ‘m’ asset pools by about