On Saturday, hackers executed a major breach of decentralized finance infrastructure, draining nearly $293 million from the Kelp DAO's cross-chain bridge. The exploit targeted rsETH, a token representing 'restaked' Ether, and has been identified as the largest DeFi exploit of 2026. Kelp DAO announced it paused rsETH contracts across multiple platforms to investigate the suspicious activity. The interconnected nature of DeFi protocols means that when one asset fails, it can trigger a cascade of issues across multiple platforms. Security firm Cyvers reported that at least nine other platforms were affected by this breach. In response, Aave, the largest DeFi lending protocol with over $20 billion in locked assets, froze markets related to rsETH to limit further damage. The incident underscores the vulnerabilities of interconnected DeFi systems, as highlighted by Cyvers Chief Executive Deddy Lavid. Fortunately, a quick response prevented an additional $100 million in losses, showcasing the urgent need for enhanced security measures in the DeFi space.