Aave CAPO Oracle Error on March 10 Triggers $27M wstETH Liquidations and 345 ETH Loss

On March 10, a CAPO oracle misconfiguration on Aave led to $27 million in forced liquidations of wstETH positions after the asset was underpriced by 2.85% against its onchain rate. The incident affected 34 highly leveraged users, generated 499 ETH in liquidator profits, and caused an identified excess loss of 345 ETH that Aave plans to fully reimburse through recovered funds and DAO treasury support. Chaos Labs attributed the event to an onchain configuration misalignment rather than a core oracle design flaw and outlined remedial steps and governance reviews to prevent similar issues.