MORPHO sees $36.4M liquidation after reUSD yield swing

About $36.39 million in PT reUSD loop positions were liquidated on decentralized lending protocol MORPHO after a large YT reUSD trade by an anonymous address starting with 0x854e, according to blockchain security firm PeckShieldAlert on X. As the address repeatedly bought YT reUSD, the expected annualized yield surged from the 11% range to the 20% range. Liquidations then occurred as the address quickly sold the YT reUSD position. YT reUSD represents the right to receive yield generated by reUSD until maturity, while PT reUSD represents the right to recover principal at maturity. A loop position is a leveraged structure that repeatedly borrows against collateral and redeposits the funds.