# Nostra Incurs $3.5 Million Bad Debt After Oracle Price Manipulation

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/23690
Published: 2026-09-24T11:31:34.000Z
Updated: 2026-09-24T11:31:34.000Z

Nostra’s Starknet money market incurred approximately $3.5 million in bad debt after an inflated Nostra (NSTR) price allowed one account to borrow major crypto assets against inadequate collateral.

Nostra disclosed the incident Sept. 17 at 9:28 a.m. ET (13:28 UTC), saying the account borrowed Ether (ETH), Starknet (STRK), USD Coin (USDC), Tether (USDT), Wrapped Bitcoin (WBTC) and DAI. The borrowing was backed by NSTR collateral whose reported value surged from less than one cent to nearly $100 in a thin market.

The price response used two inputs, including the thin on-chain market, and was accepted for collateral valuation despite NSTR’s limited liquidity. A minimum of three price sources would have rejected the response.

Nostra paused deposits, borrowing, withdrawals and liquidations while it reconciled the affected pools and pursued recovery. About $1.92 million of the borrowed assets later moved to Ethereum, including 234.57 ETH and approximately 1.3 million DAI.

The incident highlights the risk of using market prices from illiquid assets to determine how much users can borrow.