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Points of Focus
- Morpho markets show $14.7B in debt from about $7.5M in loans.
- AKEDO jumped over 200% before falling about 70% from its peak.
- Switchboard gave DeFi six days to migrate before ending oracle support on Sept. 25.
- StonkFun’s fee wallet sold $56.3M and distributed $56.2M to holders.
- Duelbits lost about $7M in a multi-chain hot-wallet hack.
Bitcoin, Ethereum and US crypto policy took most of the headlines this week. Away from the biggest stories, onchain data turned up a few stranger ones: phantom lending debt, a gaming token that tripled in two days, a $56 million launchpad selloff and a multi-chain casino hack.
Here are five crypto stories from Sept. 18 to Sept. 25 that may have slipped under the radar.
$7.5 million in Morpho loans became $14.7 billion of paper debt
Two abandoned Morpho markets now show $14.7 billion in debt from about $7.5 million in original borrowing. A Sept. 23 Bitquery investigation traced the figure to two markets with broken pricing and continuing interest accrual.
In the larger case, users borrowed USDC against sdeUSD. After deUSD collapsed with Stream Finance, its oracle kept valuing collateral near $1.07 before updates stopped. One wallet had borrowed about $7.4 million. With utilization near 100%, interest reached Morpho’s 800% annual cap, pushing recorded debt to $6.44 billion.
A second PAXG-backed market accumulated another $8.24 billion after its oracle began valuing the token at roughly a trillion times its market price.
Oracle failures have surfaced elsewhere too, including an attack where an MEV bot front-ran a hacker attempting to steal $7.8 million in rsETH.
AKEDO surged more than 200%, then gave most of it back
A two-day rally sent AKE from about $0.0462 on Sept. 18 to an all-time high of $0.1426 on Sept. 20, according to CoinMarketCap, a gain of roughly 209%.
By Sept. 25, the token had fallen to about $0.0373, roughly 74% below its peak.
Trading activity accelerated ahead of the high. CertiK recorded a 1,211.48% jump in 24-hour volume on Sept. 19, with turnover near $280 million. For comparison, Zcash recently jumped after holders backed faster blocks.
Switchboard gave DeFi six days to replace its oracle feeds
Switchboard Technology Labs said that it would wind down operations, deprecate all implementations and end remaining support on Sept. 25.
The company blamed weaker demand, tighter crypto budgets and cheaper custom infrastructure enabled by AI. It also cited Hyperliquid’s partnership with S&P as evidence that protocols are increasingly accessing data directly.
Protocols had less than a week to migrate. Kraken parent Payward recently outlined plans to use Hyperliquid’s public order book for regulated US perpetual futures. Solana had also recently activated Transaction V1, increasing maximum transaction size by more than three times.
StonkFun’s fee wallet sold $56.3 million of tokens
Bitquery traced StonkFun’s fee wallet and found $56.3 million in token sales from Aug. 23 through Sept. 22, alongside about $56.2 million in holder payouts.
The sales came from StonkFun’s reward system, which charges eligible tokens a 1% or 3% transfer tax, sells the collected tokens into liquidity pools and redistributes the proceeds to holders. Tokenized equities have also expanded across exchanges, including Reddit and GoPro shares.
The mechanism processed 69% of BUDDY’s launch supply and 61% of ZCAT’s. Bitquery also identified at least $1.41 million sent to linked wallets outside normal payout batches without establishing their purpose.
Duelbits went offline after a $7 million hot-wallet hack
Duelbits took its platform offline on Sept. 24 after attackers drained hot wallets across Ethereum, BNB Chain, Tron and Bitcoin.
SlowMist initially traced about $4.9 million and classified the incident as a suspected private-key compromise. Scam Sniffer later reported that most of the stolen assets had been swapped to ETH and consolidated into one address holding roughly 2,234 ETH.
Duelbits co-founder Joe confirmed a loss of about $7 million, said user funds were safe and that the platform would remain offline while the team investigated and replenished its hot wallets.
Recent compromises have used very different entry points, including a verified HBO Max Reddit account used to distribute 108 malware ads.
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