Polkadot: a bug causes the project's treasury to lose nearly $1.4 million

Polkadot’s treasury lost nearly $1.4 million in DOT in late October after an attacker exploited a network bug to distort the price of the dotUSD stablecoin on the project’s internal exchange. The treasury was the sole supplier of tokens to that platform’s reserve, so it absorbed the loss while no other users were affected. The incident matters because it exposes pricing and liquidity risk in protocol-run trading venues backed by a single treasury source. What to watch next is whether Polkadot repairs the price-feed mechanism and whether it changes how the internal exchange’s reserve is funded.