How did Compound lose 90 million dollars?

<p>The DeFi protocol Compound accidentally paid out 90 million dollars today to people who had deposited crypto-assets in their smart contract.</p> <p>But what exactly went wrong under the hood?</p> <p>That's the discussion in today's episode, in which I present an analogy to explain what the bug was, why it wasn't detected earlier, and why it allowed investors to withdraw astronomical sums.</p> <p>I also cannot resist the temptation to comment on Compound's initial response, which was a nervous knee-jerk reaction and completely counter-productive.</p>