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spearbit


Can you spot the vulnerability?

The `applyLosses` function is designed to apply losses in a $DeFi system. It first distributes the losses between two categories: unwinding users and locked users in buckets. Losses are then burned from the total token supply if not fully allocated to the unwinding module. The function also adjusts reward weights for each bucket based on the new token distribution.

The key operations involve:

* Loss Distribution: The function splits the losses between unwinding users and locked users based on their token balances.
* Token Burning: Any remaining loss after distribution is burned, reducing the total supply of receipt tokens.
* Reward Weight Adjustment: Each bucket's reward weight is adjusted according to the new token balance after slashing principal amounts.

Think you've got the answer? We'll post the solution on Friday.

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