DeFi survives massive exploit, $13 billion TVL drop

Despite a $292 million exploit and a $13 billion drop in Total Value Locked (TVL), Decentralized Finance (DeFi) remains resilient. The significant TVL decrease was largely due to leveraged positions unwinding rather than a complete loss of capital. While the KelpDAO exploit, potentially linked to North Korea's Lazarus Group, highlights infrastructure vulnerabilities beyond smart contracts, DeFi has weathered larger hacks in the past. The event serves as a sharp repricing of risk, with capital quickly flowing out and back in, demonstrating DeFi's capacity to recover and adapt.