The DeFi protocol Compound accidentally paid out 90 million dollars today to people who had deposited crypto-assets in their smart contract.

But what exactly went wrong under the hood?

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.

I also cannot resist the temptation to comment on Compound's initial response, which was a nervous knee-jerk reaction and completely counter-productive.