Using Chainlink in L2 chains such as Arbitrum requires to check if the sequencer is down to avoid prices from looking like they are fresh although they are not.
The bug could be leveraged by malicious actors to take advantage of the sequencer downtime.
Similar issue can be found here. Vulnerability consists of not checking for the price freshness or being updated. This means the L2 sequencer can not be working, while the contract can still fetch prices from the oracle. This will lead to faulty prices being used in the contract functionality.
Distributing assets on Liquidation Pool will not work as expected. Users can get more or less assets than they should.
Manual review
It is recommended to follow the code example on chainlink docs.
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