A wallet ending 690d bought reUSD yield tokens on Pendle early August 25, 2026, lifting implied YT-reUSD yield from about 11% toward 20% and cutting PT-reUSD roughly 2.8%–3%, which liquidated thinly buffered leveraged borrowers on Morpho. Morpho recorded 33 liquidation events between 04:37:47 and 04:51:23 UTC across USDC and USDT markets, repaying $36.14 million of debt and seizing about 38.6 million principal tokens, with the three largest positions at $13.01 million, $11.01 million and $6.83 million and no realized bad debt. The Dec. 10 PT-reUSD pool held only about $8.97 million of liquidity while the Morpho market carried $67.5 million of collateral against $52.2 million of borrows at a 91.5% liquidation threshold, leaving health factors near 1.03 with under a 3% buffer. Pendle and curator Steakhouse Financial said the dual oracle—lower of a 15-minute market average and a 6% discount curve to $1 at maturity—worked as designed; on-chain analysts linked the YT buyer to the dominant liquidator and estimated gains of at least $360,000, while Re Protocol said it is reviewing whether the PT price was manipulated and working on a safer oracle setup.