Arbitrum-based Ostium paused trading after a reported $18 million USDC exploit tied to manipulated oracle data, according to early reports.

Hackers manipulated the Ostium price feed by compromising an oracle signer key, allowing them to drain roughly $18 million from the exchange.

A hacker used Ostium's own price-reporting infrastructure against the protocol, submitting falsified future-dated oracle data to manufacture fake trading profits and trigger an…