Oracle Attack

An exploit that manipulates the price source a smart contract relies on to make financial decisions. Classic pattern: protocol prices an asset from a single AMM's spot reserves, attacker uses a flash loan to temporarily move those reserves, protocol values collateral at the inflated price, attacker borrows against it and exits. Defences include time-weighted average prices (TWAPs), multi-source aggregation (Chainlink, Pyth), staleness checks, and circuit breakers. Mango Markets, Inverse Finance, Cream Finance, bZx, and many others have lost funds to this pattern.