Balance Coin, the dollar-pegged stablecoin used by 42DAO's Balance Protocol, fell to near zero after an oracle manipulation attack on BNB Chain.

CoinDesk reported that the token traded close to $1 a day earlier before dropping more than 99% to roughly $0.0014. CryptoTimes separately described the move as a collapse to about $0.0013. The conservative read is simple: BLC effectively lost its peg after a single exploit rather than through ordinary market selling.

The incident appears to center on BTCB, the Binance-pegged bitcoin asset used as collateral in the system. According to CoinDesk's summary of security firm SlowMist's analysis, the attacker pushed an abnormally low bitcoin price into the protocol's oracle path. The lending contract then accepted that price without sufficient range checks or a liquidation delay.

That let the attacker liquidate vaults that should not have been eligible, seize collateral and swap the proceeds. CoinDesk put the profit at about $912,000, while the article's linked BscScan transaction confirms the relevant transaction executed successfully on July 21 UTC.

The loss is modest compared with the largest DeFi hacks, but the failure mode is important. Stablecoin systems that depend on collateral pricing need oracle bounds, delay mechanisms and circuit breakers, especially when a single bad price can turn healthy vaults into forced liquidations.