As I understand it: Value DeFi is a company that provides infrastructure for some kind of lending. Money (in this case cryptocurrency) is locked up in a “smart

As I understand it: Value DeFi is a company that provides infrastructure for some kind of lending. Money (in this case cryptocurrency) is locked up in a “smart contract” that acts as a sort of bank account. If all is working correctly, the owner of that money can dispense it to borrowers by sending specially crafted and authenticated messages. In this case it looks like the way it was supposed to work is: create the contract, send an “initialize” message to declare yourself the owner, then fund it and otherwise control the money. The intent was that “initialize” could only ever happen once, so the owner could not change. In practice, there was a bug where someone could initialize again, thereby declaring themself the owner of the contract and funds. Someone did this to a contract funded got with $10M, then promptly sent it all to their own account.