Morpho co-founder: The "liquidity shortage" in some vaults is not a systemic flaw, but a natural reaction mechanism under stress.

Morpho co-founder Merlin Egalite responded to reports of "liquidity shortages" in some vaults. He stated that when markets are under stress, lenders often withdraw funds simultaneously, leading to increased capital utilization, decreased liquidity, and in extreme cases, a temporary lack of available liquidity.