Avalanche Vault Loses $1.01M in Flash Loan Exploit

On October 27, 2026, an attacker targeted a Tranche Vault on the Avalanche blockchain linked to Fence Finance and Valinor Digital, using a flash loan to manipulate the vault’s share accounting. The initial transaction occurred at 23:56:41 UTC, when the attacker borrowed 1,013,353.61 USDC, deposited it into the vault, and withdrew it within the same transaction. On October 28, at 00:00:03 UTC, the attacker exploited the settlement flaw to withdraw the same amount again, draining approximately $1.01 million in USDC from the vault. Security analytics firm Blockaid reported the exploit and identified the affected vault.