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How Can an Oracle Be Manipulated to Execute a Profitable but Fraudulent Options Trade?

An attacker could manipulate an Oracle by compromising a single data source or overwhelming a poorly decentralized network with false data. This false price feed could trigger an options contract to settle incorrectly, allowing the attacker to profit from an artificial liquidation or an incorrect payout.

What Is an Oracle Attack and How Does It Combine with Reentrancy in Derivatives?
How Does a Manipulated Spot Price Enable a Profitable Attack?
How Can the Cost of Manipulating a TWAP Oracle Be Calculated?
What Is the Risk of an “Oracle Manipulation Attack”?