> ## Documentation Index
> Fetch the complete documentation index at: https://pegana.xyz/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# mSOL flash-crashed to 0.85× SOL on a single oracle update

> Solend's oracle priced mSOL off a thin Mango pool. One stale update + one whale exit = $21M of liquidations on otherwise-healthy collateral.

<Warning>
  **Asset**: mSOL · **Class**: LST · **Date**: 2022-06-19
  **Worst spread**: −1500 bps · **Duration**: ≈ 4 min outside `PEGGED`
  **Detected live**: No (pre-Pegana retrospective)
</Warning>

## Background

Solend used Pyth's mSOL/USD feed which composited from Mango Markets liquidity. mSOL
had real depth on Saber and Marinade's redemption, but the Mango pool was thin.
Healthy mSOL borrows used mSOL as collateral with conservative LTV.

## Trigger

A user exited Mango by selling \~88k mSOL into thin depth. The pool's mid-point
printed mSOL at 0.85× SOL — accurate for *that* pool, wildly wrong for the actual
asset.

## Cascade

* Solend's oracle ingested the print. mSOL collateral re-valued at 0.85×.
* Liquidation engines triggered on \~\$21M of positions that were nowhere near
  liquidation against true intrinsic.
* Liquidators sold the seized mSOL — also into thin venues — amplifying the
  down-print.
* Marinade's on-chain redemption never moved. **Intrinsic stayed pegged. Market lied
  for 4 minutes.**

## Recovery

Mango depth recovered as the seller ran out of supply. The oracle re-converged. mSOL
re-pegged inside 4 minutes. **Liquidated positions did not recover.**

## What Pegana would have shown

* **t=0** — Whale begins selling. Smoothed spread starts rising sharply.
* **t≈30s** — Spread crosses 300 bps. **`PEGGED → DRIFT`** (would have notified
  subscribers including Solend, if they were on Pegana).
* **t≈45s** — Spread crosses 500 bps. **`DRIFT → DEPEG`**.
* **t≈60s** — Spread crosses 1000 bps. **`DEPEG → CRITICAL`**.
* **t≈4min** — Mango depth recovers. Smoothed spread falls back below thresholds.
* **t≈5min** — After exit dwell, **`CRITICAL → DEPEG → DRIFT → PEGGED`**.

The crucial fact: throughout the entire incident, Sanctum's `sol_value` for mSOL
would have shown **no change** — Marinade's on-chain redemption was unaffected. The
Jupiter routed quote, however, would have shown the dramatic drop. The
`intrinsic_usd` / `market_usd` divergence in the alert payload would have made the
"market is broken" framing obvious.

Whether a lending protocol could have acted in 30 seconds is a different question.
But the signal would have been there.

## Lesson

Intrinsic vs market is the right primitive for LSTs. If your monitor only watches a
market price, you'll miss the case where market is the broken side. Pegana checks
Sanctum's on-chain `sol_value` as ground truth and compares against Jupiter route
quotes — exactly to catch this kind of incident.

## Sources

* [Solend governance — mSOL liquidation post](https://solend.fi/blog)