Nostra has disabled lending on its Starknet money market after an attacker borrowed about $3.5 million against collateral with an artificially inflated price. The attack ran for roughly two hours, from 05:23 to 07:08 UTC, and Nostra confirmed the incident the same day.

The attacker created a thin NSTR/SolvBTC trading pool with only about 1.5 SolvBTC of liquidity on one side and repeatedly traded through it. That pushed the reported NSTR price from about $0.006 to about $49.5, an increase of roughly 8,000 times, which was then used to borrow ETH, STRK, USDC, USDT, WBTC, and DAI.

Security firms classified the event as oracle manipulation rather than a smart-contract bug. The underlying weaknesses were that an illiquid token was accepted as collateral, and that its price came from a data source that very little trading could distort.

Around $1.92 million of the borrowed assets was bridged to Ethereum, including 234.57 ETH and 1.3 million DAI. For lending protocols, the case shows the risk of listing small tokens as collateral. The next steps are Nostra's recovery plan and any changes to collateral and pricing rules.