Golden Finance reported that Chaos Labs founder Omer tweeted that the PAXG/USDC market on Morpho lost about $230,000 due to an oracle configuration error. Specifically, the Oracle SCALE_FACTOR on Morpho was misconfigured and failed to take into account the difference between USDC (6 decimal places) and PAXG (18 decimal places), which led to a 12-digit inflation in the PAXG price, and security monitoring may focus on the reference price rather than the calculated oracle price. In the end, the attacker deposited $350 in PAXG and loaned out $230,000 worth of USDC.