ChainThink report: On March 15, according to on-chain analyst Yujin's monitoring, an address that received 7,400 ETH from Tornado Cash (suspected hacker) orchestrated the recent CAKE and THE collateral liquidation event on Venus Protocol. This incident led to approximately $2.15 million in liquidation shortfall on Venus Protocol (around 1.18 million CAKE and 1.84 million THE), while the same address borrowed assets worth roughly $5.07 million from Venus (2,172 BNB, 1.516 million CAKE, and 20 BTC).

The sequence of events unfolded as follows: The address first received 7,400 ETH via Tornado Cash through the wallet 0x7a7…234, then used it as collateral on Aave to borrow approximately $9.92 million in stablecoins (USDT, DAI, USDC), which were subsequently distributed across multiple wallets for purchasing THE.

At around 20:00 tonight, the address allegedly triggered a price pump on centralized exchanges (CEX) for THE—possibly having pre-positioned long positions—and subsequently deposited 36.1 million THE into Venus Protocol via two wallets as collateral, borrowing assets such as BTC, BNB, and CAKE.

About 40 minutes later, THE’s price suddenly plummeted (likely indicating a shift from long to short positions). As the collateral value rapidly declined, the position on Venus was forcibly liquidated, further accelerating THE’s downward spiral. Ultimately, both wallets’ collateral were fully liquidated, yet approximately $2.15 million in borrowed funds remained unpaid, creating a bad debt exposure for Venus Protocol.

In summary, the address leveraged approximately $9.92 million in borrowed capital for this operation, while only borrowing about $5.07 million in on-chain assets—no direct profit is apparent from on-chain activity alone. However, it is highly probable that the actor profited from short positions on CEX by triggering on-chain liquidations to depress THE’s price.