Can a Deviation Threshold Be Bypassed by a Flash Loan Attack?

Yes, a deviation threshold can be bypassed by a flash loan attack if the attacker can use the loaned funds to cause a price movement that exceeds the threshold. The attacker manipulates the price on a low-liquidity exchange, forcing the oracle to submit a new, false price.

They then use this false price to profit from the vulnerable smart contract before repaying the flash loan. Robust oracles mitigate this by using a multi-source index price.