Let’s explore how Solana DeFi protocol Loopscale lost $5.8 million in an exploit targeting RateX collateral pricing. Solana-based decentralized finance (DeFi) platform Loopscale has faced a massive cyberattack that has caused a loss of around $5.8 million. This exploitation represents around 12% of the protocol’s total value locked (TVL). This breach, which took place on April 26, 2025, impacted Solana price slightly and targeted the vulnerabilities in Loopscale’s collateral pricing mechanisms. This target was especially made on RateX-based pricing for its lending vaults, resulting in the platform temporarily pausing the key function in response to the hack of the Solana DeFi protocol to mitigate further risks. 

How the Exploit Occurred

The hacker of this Loopscale hack took advantage of an issue that was present in Loopscale’s pricing mechanism, which allowed them to withdraw funds by taking out a series of undercollateralized loans. The attack has resulted in the theft of around 1200 SOL and $5.7 million in USDC from the platform’s USDC and SOL vaults. Despite the past audits run, there were some vulnerabilities left undetected that resulted in this hack to become one of the crypto hacks of 2025. 

According to Mary Gooneratne, founder of Loopscale, the exploit was traced to the problem with the platform’s RateX-based collateral pricing system. However, the attack did not impact the borrowers or other Solana DeFi protocol participants. The Loopscale team on the X platform has announced this attack and wrote, “Today at 11:30AM EST, a manipulation of Loopscale’s RateX PT token pricing functions led to an exploit of ~5.7M USDC and 1,200 SOL from the Loopscale USDC and SOL Vaults. All Loopscale markets have been temporarily halted while our team investigates further.”