Andre Cronje: L0/rsETH incident may have led to $200M rsETH theft

Andre Cronje, founder of Flying Tulip, said the L0/rsETH incident may have resulted in roughly $200 million worth of rsETH being stolen, citing a possible private key compromise or a configuration mistake. The rsETH was then deposited into Aave as collateral to borrow ETH, as limited rsETH liquidity made it difficult to exit the position directly. Cronje added that while the position was technically collateralized, Aave cannot cover user losses, raising the risk of a bank-run-style withdrawal rush.