Balance Coin (BLC) has lost its dollar peg after a hacker exploited vulnerabilities in the 42DAO protocol, wiping out 99.8% of the algorithmic stablecoin’s value. The exploit drained approximately $912,000 from the protocol and pushed BLC to around $0.0013 within a short period. According to blockchain security firms PeckShield and SlowMist, the attacker completed the exploit in a single blockchain transaction by abusing weaknesses in the protocol’s oracle pricing and liquidation mechanisms. Their analysis showed that missing security checks allowed manipulated price data to trigger a rapid series of liquidations before the system could respond.