PT-reUSD’s 2.8% decline early Tuesday, August 25, 2026, was followed by 33 Morpho liquidation events that repaid $36.14 million of debt between 04:37:47 and 04:51:23 UTC. The reading shows how a relatively small move in a yield-token market can rapidly force deleveraging when collateral values approach a protocol’s liquidation threshold.
The liquidations were concentrated in the USDC market, which accounted for $35.19 million of the debt repaid. The USDT market accounted for $956,000.
Data Snapshot
MetricCurrentPreviousChangePeriodAs ofSourcePT-reUSD price move2.8% decline——early Tuesday, August 25, 20262026-08-25The DefiantMorpho liquidations$36.14 million of debt repaid——33 liquidation events between 04:37:47 and 04:51:23 UTC2026-08-25The DefiantCollateral seized38.6 million principal tokens——33 liquidation events between 04:37:47 and 04:51:23 UTC2026-08-25The DefiantAffected Morpho market size$67.5 million of collateral against $52.2 million of borrows——August 25, 20262026-08-25The DefiantPendle reUSD pool liquidity$8.97 million of liquidity——maturity December 10, 20262026-08-25The Defiant
33 Morpho liquidations repaid $36.14 million of debt
Liquidators seized 38.6 million principal tokens across the 33 events, according to The Defiant. Debt repaid and collateral seized should not be treated as equivalent figures: the former is a dollar-denominated repayment measure, while the latter is a quantity of principal tokens transferred through the liquidation process.
The speed of the activity is notable. All 33 events occurred within the reported window from 04:37:47 to 04:51:23 UTC on August 25, rather than being spread across a longer period of market stress.
PT-reUSD’s oracle used the lower Pendle price or maturity curve
PT-reUSD is a Pendle principal token tied to the dollar-denominated, interest-bearing reUSD asset, as CoinDesk reported. The affected Morpho market used an oracle that took the lower of PT-reUSD’s 15-minute average Pendle market price and a fixed curve rising to $1 at maturity.
That construction meant the market price could determine the collateral valuation when it sat below the maturity curve. The market’s liquidation threshold was 91.5%, according to Morpho market documentation, setting the point at which positions became eligible for liquidation.
How a 3% move became $36 million of liquidations. — Source: CoinDesk
A $67.5 million collateral market met an $8.97 million Pendle pool
On August 25, the affected Morpho market held $67.5 million of collateral against $52.2 million of borrows. Separately, the Pendle reUSD pool had $8.97 million of liquidity, a figure attributed to Pendle’s API, and was due to mature on December 10, 2026.
Those measures describe different parts of the system: the Morpho figure covers collateral and borrowing in the lending market, while the Pendle number is pool liquidity. They therefore are not directly comparable measures of market depth or exposure.
Pendle and Steakhouse said the liquidations created no bad debt
Pendle said the oracle was configured correctly and functioned as intended. Steakhouse said lenders were unaffected and no bad debt was created, according to The Defiant.
The episode nevertheless left a clear record of the interaction between an oracle’s valuation rule, a 91.5% threshold and concentrated borrowing: a 2.8% PT-reUSD decline preceded $36.14 million of debt repayment in a tightly defined sequence of liquidations.
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Source: Crypto Daily