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Kava said it is investigating abnormal behavior originating from a decentralized application within its ecosystem, calling the matter a high-priority issue and promising an official update soon. The KAVA token fell 46.51% over 24 hours to $0.03679 on the news. The selloff underscores how quickly token holders punish perceived smart-contract or protocol-level risk in DeFi ecosystems. Traders will watch Kava's forthcoming disclosure for which dApp is involved, whether user funds are affected, and whether the incident is isolated or points to broader vulnerabilities in the chain's application layer.

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