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The Yield protocol suffered significant losses in a Vault swap operation, totaling approximately $3.73 million. The incident occurred during the exchange from stkGHO to USDC — due to extreme market slippage, 3.84 million GHO tokens were only exchanged for 112,000 USDC. This transaction exposed issues with current market depth and also serves as a reminder for users to exercise extra caution during large liquidity operations. For investors participating in DeFi, this is a noteworthy case that highlights the vulnerability of a single liquidity pool when handling large transactions.