According to CoinMeta, the Kava lend protocol was attacked. The attackers exploited a vulnerability in the BUSD market to steal approximately 55.2 million KAVA, worth about $3.76 million. The attackers reduced the net supply in the BUSD market to an extremely low level, causing the value of deposits to increase by about 243,000 times in just 3 minutes. They then borrowed KAVA 127 times by inflating collateral and used a second account to settle loans, bypassing the borrowing limits. Approximately 49.2 million KAVA were transferred across chains to BNB Chain through LayerZero. Most of these were sold for about $2.09 million in BNB and USDT. Kava indicates that this incident did not involve unlimited issuance, and the impact was limited to Kava and lend.