Address linked to 7,400 ETH from Tornado Cash causes CAKE and THE liquidations on Venus, leaving $2.15 million shortfall

An address that received 7,400 ETH from Tornado Cash via 0x7a7...234 and borrowed 9.92 million USDT, DAI and USDC on Aave orchestrated CAKE and THE collateral liquidations on Venus, resulting in approximately $2.15 million in losses for the protocol, on-chain analyst Yujin reports. The funds were distributed across multiple wallets to purchase THE, after which the trader allegedly inflated THE's price on a centralized exchange around 8 PM, deposited 36.1 million THE into Venus through two wallets, and borrowed BTC, BNB and CAKE before THE's price collapsed roughly forty minutes later. Both Venus positions were fully liquidated, leaving about 1.18 million CAKE and 1.84 million THE unpaid and creating the $2.15 million shortfall, while the address withdrew approximately $5.07 million in assets from Venus (2,172 BNB, 1.516 million CAKE and 20 BTC). Yujin noted that although on-chain data show 9.92 million USDT borrowed against only $5.07 million lent on Venus, the trader may have profited from CEX positions by triggering on-chain liquidations to suppress THE's price.