KelpDAO exploiter borrows 82,600+ ETH on Aave using RSETH as collateral, triggering bad debt and $6.28B TVL drop

Aave has recorded bad debt after a KelpDAO exploiter borrowed more than 82,600 ETH (about $195M) using RSETH as collateral. The incident sparked large-scale withdrawals by major holders, sending Aave's total value locked (TVL) down from $26.396B to $20.114B, a $6.28B decline. Notable withdrawals include: MEXC ($431M), whale 0x7CD0 (possibly linked to Nonco) ($405.7M), and Abraxas Capital ($392M).