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Flooring Protocol had a critical vulnerability last week that let an attacker turn a small WETH deposit into a near-infinite balance of fractionalized NFT tokens and start draining underlying NFTs from liquidity pools. Yuga Labs found the exploit before the attacker could finish. Their CEO quietly instructed the company's OTC trading desk to front capital and NFTs to rescue 68 at-risk assets from the protocol — Bored Apes, Punks, Doodles, Azukis — over half a million dollars at floor. They're holding them temporarily until the protocol deploys a fix and returning them to rightful owners. This is the first time an NFT creator has run a white-hat rescue operation at this scale, acting as incident responder for a third-party protocol failure. Not the protocol team. Not a white-hat hacker. The art project itself, deploying its own trading infrastructure to extract its holders' assets from a compromised contract. Flooring Protocol still hasn't published a post-mortem or confirmed a remediation timeline. The vulnerability remains unpatched. Yuga's VP of Blockchain warned that exposure extends beyond what was already exploited. When DeFi protocols become the infrastructure where art lives and trades, the failure mode isn't just financial. A drained pool means an artwork vanishes from its owner's wallet. The question this raises isn't about Flooring Protocol specifically — it's about what responsibility creators have when their community's assets are at risk in someone else's smart contract, and whether the current answer is "whatever the creator can afford to do quietly on a Monday afternoon."
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