According to Odaily Planet Daily, Chaos Labs founder Omer said that the PAXG/USDC market on Morpho lost about $230,000 due to oracle configuration errors.
Specifically, the Oracle SCALE_FACTOR on Morpho was misconfigured and failed to account for the difference between USDC (6 decimal places) and PAXG (18 decimal places).
This caused a 12-digit inflation in the price of PAXG, and the attacker deposited $350 in PAXG and loaned out $230,000 in USDC.