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2/ The hack is made possible due to the flawed logic its donation and liquidation. Specifically, the donateToReserves needs to ensure the donator is still over-collateralized. And liquidation needs to ensure the *correct* conversion rate from borrow to collateral asset.
6 (cont)/ This is possible because @eulerfinance gives a lot bonus if account is way way underwater. It's on their blog post and they claim it makes liquidation extremely efficient.
https://t.co/Kz2peDM3xT