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A yield farming protocol suffered a staggering $4 million loss on a single swap operation due to inadequate slippage protection settings. The transaction executed without predetermined slippage limits, resulting in severe price impact and significant capital drain. This incident highlights the critical importance of implementing proper risk controls in DeFi trading, particularly when executing large-volume swaps on liquidity pools. The protocol's oversight serves as a stark reminder that even established projects can face devastating losses without meticulous transaction parameter validation.