The risks of flash loans in decentralized finance (DeFi) are likely underestimated by the market. These uncollateralized, instant loans enable arbitrage and capital efficiency but are vulnerable to malicious exploits. Flash loan attacks can drain protocols within a single transaction, as seen in cases like the 2020 Harvest exploit, which cost $27 million. The composability of DeFi amplifies systemic risks, where vulnerabilities in one protocol can cascade across interconnected platforms. High volatility, lack of regulatory oversight, and reliance on oracles further heighten the potential for manipulation and losses. While flash loans offer innovative opportunities, their low barriers to entry and anonymity make them attractive for bad actors. Market participants often focus on high yields, overlooking the fragility of these systems, especially during volatile periods when gas fees and slippage spike.