It seems disingenuous at best to say the platform worked as intended. The DAI price traded no higher than $1.03 anywhere else GLOBALLY. This was an exploit plain and simple. The adverse market condition was only on the single oracle that Compound used. The market did not price DAI at $1.30. The Compound protocol was attacked by someone who manipulated the DAI price up on Coinbase for the purpose of liquidating people at a discount.
Not only should most of these liquidations not have happened, folks that had non-DAI collateral lost ~30% of value of their collateral in the liquidation process due to the erroneous oracle allowing the collateral to be seized at an adverse and improper exchange rate.
I do hope the community at least partially reimburses the losses as this was clearly not intended behavior by the protocol, and borrowers following the UI “safe max” found themselves liquidated due to a protocol exploit. Not real market conditions that occur due to normal volatility.