A compromised private key let an attacker mint roughly $80 million in uncollateralized USR, breaking the dollar peg and pushing USR to about $0.27 (~70% drop). Resolv paused smart contracts, burned ~9 million illicit tokens, and is working with law enforcement and on-chain analysts. Post-incident supply includes ~102M pre-incident USR plus ~71M illicitly minted tokens still circulating. The protocol holds about $95M in assets (down from $141M) versus ~$173M in liabilities (collateralization ~55%). Resolv is facilitating an allowlist redemption for pre-incident holders (who may recover ~ $0.93 on the dollar if they redeem first). The team warned users not to trade USR; the exploit is expected to create bad debt in DeFi lending markets that accepted USR as collateral.

Facts from the summary: a compromised private key enabled ~ $80M of uncollateralized USR minting, USR is trading near $0.27, Resolv paused contracts and burned ~9M illicit tokens, current circulating supply and illicit amount remain, protocol assets fell to ~$95M vs ~$173M liabilities (collateralization ~55%), and the team expects bad debt in DeFi lending and is offering allowlist redemptions to pre-incident holders. These concrete facts justify a strongly negative sentiment and high short-term trading impact for USR and protocols exposed to it.