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Flash loans, while useful, can be exploited to cause significant harm

OverWallet is a blockchain entry with a soft-landing reward system.

You can get point rewards by completing daily activities and missions like quizzes.

The Blockchain Learning Hub has daily quizzes to enhance your blockchain knowledge.

To get started, sign up using this link mobile.over.network/en/invite/3SDAUQX99B or use “3SDAUQX99B” as the invitation code.

When you sign up using the invitation code, you’ll get a 1,000 P bonus.

To begin a quiz, open the OverWallet app, select the “Missions” tab, and select “Daily quiz”.

In this guide, you’ll learn the answer to “Flash loans, while useful, can be exploited to cause significant harm” in OverWallet.

Flash loans, while useful, can be exploited to cause significant harm

Question: Flash loans, while useful, can be exploited to cause significant harm. Which vulnerability is exploited by attacks that instantaneously manipulate exchange rates using flash loans, triggering mass liquidations?

Answer: Price Oracle.

Further reading

Which of the following cannot be done with a flash loan?

What is the purpose of a “replay attack” in the context of blockchain?

Which blockchain feature allows the creation of a secondary blockchain that runs in parallel to the main blockchain?

About the author

Lim How Wei

Lim How Wei is the founder of followchain.org, with 10+ years of experience in Social Media Marketing and 5+ years of experience as an active investor in stocks and cryptocurrencies. He has researched, tested, and written thousands of articles ranging from social media platforms to messaging apps.

Lim has been quoted and referenced by major publications and media companies like WikiHow, Fast Company, HuffPost, Vice, New York Post, The Conversation, and many others. One of his articles about the gig economy was quoted by Joe Rogan, who hosts The Joe Rogan Experience (the most popular podcast in the world), in the This Past Weekend podcast (the third most popular podcast in the world as of 2026) by Theo Von.

In his free time, Lim uploads personal finance videos on his YouTube channel, Lim Finance, to guide others on their financial journey. He also creates gaming guides, walkthroughs, solutions, and tips for the games he plays, helping players with their progression.