How Does an Attacker Profit from a Successful Oracle Manipulation Using a Flash Loan?

The attacker profits by exploiting a DeFi protocol's reliance on the temporarily manipulated price. For example, they can use the artificially inflated price of a token as collateral to borrow a large amount of another asset.

Once the loan is executed, the flash loan is repaid, the manipulated price reverts, and the attacker is left with the borrowed assets, which they do not have to repay due to the under-collateralized position.