# Balance Coin (BLC) Plummets 99% Following 42DAO Exploit DeFi protocol 42DAO's security breach triggers catastrophic crash for Balance Coin. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-07-22 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/4f50b1b2-8ece-4713-8533-1064d6cab34d ## Historic Collapse of Balance Coin Balance Coin (BLC) lost over 99% of its value after DeFi protocol 42DAO suffered an exploit worth approximately $915,000. The token plummeted from nearly $1 to fractions of a cent, marking one of 2026's most dramatic crypto crashes. ## Oracle Manipulation Triggers Crisis Blockchain security firm PeckShield identified manipulation in 42DAO's Median Oracle. The system accepted an abnormally low BTCB price, initiating liquidation. Vulnerabilities in the Spotter poke function facilitated the attacker's exploit. ## Mass Liquidations in Single Transaction The manipulated price entered the protocol's accounting system and was processed without verification by the Dog module. This allowed the attacker to instantly liquidate multiple BTCB vaults in one transaction, as documented by SlowMist. ## Market Reaction Turns Violent BLC's price dropped from $0.997 to $0.0025, a 99.75% loss in 24 hours. The token's market cap collapsed to $12,000 with trading volume at $94,900. Over 1,600 transactions occurred, with buys slightly outnumbering sells. ## Mounting Security Issues in DeFi The 42DAO incident follows a series of DeFi exploits in 2026, including Allbridge's $1.65M theft in July and Syscoin's bridge exploit minting 5B SYS tokens in June. Inadequate security measures continue to enable such attacks. ## Wake-Up Call for Crypto Security The 42DAO case underscores critical vulnerabilities in price feed mechanisms and liquidation processes. Protocols must now prioritize strengthening oracle validation and implementing delay mechanisms to prevent similar catastrophes. ## Sources covering this story - https://cryptopotato.com/balance-coin-blc-crashes-99-after-42dao-suffers-exploit/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._