Resolv Labs paused all protocol functions after an attacker minted roughly 80 million unbacked USR tokens, driving the USR stablecoin off its dollar peg (briefly near $0.14, ~$0.24 at reporting). The team froze app activity, Season 4 airdrop claims, and staking/unstaking; onchain analysis shows the attacker converted most minted USR into ETH and sold about $25M. Resolv says the collateral pool remains intact, reopened redemptions only for legitimate pre-exploit holders, and issued a 72-hour ultimatum offering a white‑hat-style return of 90% of converted funds (10% bounty) or escalation including exchange/bridge freezes and law enforcement. The incident triggered significant liquidations and outflows (~$180M on Morpho, ~$334M from Fluid) and raised fresh concerns about stablecoin fragility.

Facts: attacker minted ~80M unbacked USR; USR lost its peg (trading near $0.14, ~$0.24 at report); attacker converted most USR into ETH and sold ~ $25M; Resolv froze protocol activity and limited redemptions; large liquidations/outflows (~$180M Morpho, ~$334M Fluid). These concrete onchain actions, sales and protocol freeze create immediate sell pressure and operational risk, supporting a strongly negative short‑term market view.