Stream Finance External Manager Blow-Up

What happened

On November 4, 2025, Stream Finance said an external fund manager had effectively vaporised around $93M, triggering a much wider synthetic-debt unwind.

This was less a smart-contract exploit than a systemic collateral crisis. Stream's synthetic stack was wired into multiple lenders and related stable structures, so once confidence broke the damage spread quickly. These are often the messiest incidents because the initial hole is smaller than the eventual credit crater it opens.