Fluid said its automatic limit mechanism blocked excessive borrowing after the Resolv hack, while the protocol paused the USR market and said any bad debt on Fluid will be fully covered for users.
Resolv Labs said a stolen private key allowed an attacker to mint about $80 million in unbacked USR. The protocol said it paused affected contracts and burned about 9 million USR held by the attacker, while confirmed losses were limited to roughly $500,000 in redemptions. According to Morpho CEO Paul Frambot, the incident also affected USR, related assets including RPL, and lending markets using them as collateral, though only about 15 of roughly 500 Morpho Vaults with more than $10,000 in deposits had major exposure above $10,000. The latest update adds that Fluid said its automatic limit mechanism prevented excessive borrowing after the hack, that the USR market on Fluid has been paused, and that any bad debt on Fluid will be fully covered for users. Resolv also said it plans to begin redemptions for pre-incident USR from whitelisted users on March 23, 2026.