A peripheral contract linked to Aave was hacked due to an arbitrary call or logic error, but the core Aave protocol and user funds remain unaffected. The exploit targeted a UI peripheral contract used for swaps, and the extracted funds were leftovers from successful swaps. The incident did not compromise user funds or pose any risk to approvals. Aave users and the protocol are safe, and there is no need to activate the Aave safety module. The hack involved positive slippage dust accumulation from "repay with collateral" Paraswap integration.