Aping Peril: The Price Manipulation Exploit with ParaSpace

ParaSpace, a DeFi lending protocol, suffered a price-manipulation exploit on March 17, 2023 targeting the AutoCompoundApe collateral calculation; the attacker manipulated staked ApeCoin amounts to inflate collateral size and borrow excess tokens. The incident resulted in an estimated 50–150 ETH lost to slippage while 2909 ETH were recovered, and the vulnerable contract was introduced after the last audit (out of scope).