Curve Finance's soft liquidation mechanism passed a real-world test during a recent hacking attempt, despite the native token CRV's price dropping over 28%. The mechanism, part of Curve Finance's Lending-Liquidating Automate Market Maker Algorithm (LLAMMA), ensures liquidations occur without resulting in "bad debts". However, the market reacted negatively to the event, with the CRV price falling significantly. This follows previous coverage on Curve Finance's underlying "systemic risks", particularly concerning founder Michael Egorov's debt obligations.