Users of the Alpaca Finance lending protocol suffered losses when the protocol's sloppy oracle implementation finally resulted in consequences. Although many had warned the project about their glacial oracle setup, and the vulnerabilities they were opening themselves up to, the project repeatedly denied any issues and even banned those voicing concerns.
Then, when a new token called THENA was listed on Binance and experienced major volatility as trading opened, Alpaca's issues came to a head. As the token price surged, the slow oracle failed to reflect price changes, allowing people to withdraw far more THENA than they had posted as collateral. THENA lenders have lost an estimated $2.8 million.
On December 10, Alpaca Finance proposed distributing $50,000 "saved" by their liquidation bot to the lenders who had lost funds. Alpaca Finance also banned users complaining about their losses in the project Discord, dismissing them as a "group bot/FUD attack".