A $28.4 million loan collateralized by AAVE tokens triggers a series of liquidations, exacerbating market instability as token prices decline sharply.
On June 6, a loan backed by 355,093 AAVE tokens, worth approximately $28.4 million, faced multiple liquidations due to a sharp price decline, leading to nearly $2 million in collateral being liquidated. As AAVE fell to $104, the liquidations repaid the stablecoin debt, highlighting the volatility risks in DeFi lending markets.