How Can Flash Loans Be Used in Conjunction with an Oracle Attack?
A flash loan allows an attacker to borrow a massive amount of capital without collateral for the duration of a single transaction. The attacker uses this capital to temporarily manipulate the price of an asset on a DEX (which the oracle may be reading), then uses that false price to execute an exploit (e.g. draining a lending pool) before repaying the loan, all within seconds.