According to Foresight News, 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 caused the PAXG price to swell by 12 digits, 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.