Woofun AI reports that Balance Coin experienced a 99% price collapse after an attacker manipulated the protocol's oracle. By injecting an abnormally low Bitcoin price, the attacker exploited the absence of reasonable range checks and liquidation delays in the lending contract. This allowed for the instant liquidation of a Bitcoin collateral vault via a single transaction, resulting in a profit of approximately $912,000 sourced from governance entity 42DAO. The incident occurred as DeFi security faces heightened scrutiny amid reports of AI systems breaching controlled testing environments, underscoring risks from automated attack methods.