This is the crux of the whole DeFi thing, and I strongly agree this was not a hack.
My whole problem with DeFi is Gödel's Incompleteness Theorem. Roughly, it states that any reasonably complex code is going to have outcomes that cannot be determined by reading the code. In this case:
* Started with currencies that didn't allow flash loans.
* Made a "we feel good about democracy of involvement" rule that supermajority could make any decisions with the funds "because we like people who invest in our work."
* They added two currencies that supported flash loans.
* Person or persons with currencies used flash loans to gain supermajority to transfer the funds out.
This is why banks are inefficient. There are (in theory) safeguards to transfers make it possible to stop or reverse activities. DeFi is forever going to be dealing with these issues after the fact.
* Started with currencies that didn't allow flash loans. * Made a "we feel good about democracy of involvement" rule that supermajority could make any decisions with the funds "because we like people who invest in our work." * They added two currencies that supported flash loans. * Person or persons with currencies used flash loans to gain supermajority to transfer the funds out.
This is why banks are inefficient. There are (in theory) safeguards to transfers make it possible to stop or reverse activities. DeFi is forever going to be dealing with these issues after the fact.