Saga's Layer-1 blockchain suffered a severe crisis when a smart contract vulnerability on its SagaEVM chain resulted in nearly $7 million in losses, forcing the team to cease operations. Attackers exploited a cross-chain messaging vulnerability to mint Saga Dollar (D) tokens, bridged them to Ethereum, and exchanged them for ETH through decentralized exchanges (DEXs). This caused the Saga Dollar price to decouple from Ethereum to approximately $0.7559, and its total value locked (TVL) to plummet by more than 55% to $16.07 million. This incident comes at a time of overall turmoil within the Cosmos ecosystem, with Mars Protocol announcing a complete shutdown by March 2026 after suffering another vulnerability attack.