One Oracle Key Compromise Froze Four Chains and Hit Full Sail

Full Sail confirmed vault losses after an oracle compromise

Full Sail, a decentralised exchange (DEX) on the Sui blockchain, confirmed that users lost funds held in its automated vaults. The team traced the losses to a suspected compromise of Switchboard oracle feeds on 29 August 2026. Full Sail stated that "a loss of funds has been confirmed" and paused all deposits and withdrawals on the platform. The team said it was still investigating the incident.

"Deposits and withdrawals will remain paused until oracle integrity is restored and verified to prevent further losses.", 29 August 2026. — Full Sail, official statement

Switchboard halted feeds across four Move-based chains

Switchboard, a multi-chain oracle provider, shut down its price feeds on four blockchains that use the Move programming language: Sui, Aptos, IOTA and Movement. The four networks share the Move codebase. The provider acted after it detected a potential security compromise in its Move deployments. Its Solana feeds run on separate code and stayed online, which limited the damage to the Move ecosystem.

An attacker manipulated IOTA's price to mint stablecoins

On IOTA, an attacker used a compromised oracle key to set the token's price to $10 million. That false price let the attacker mint about 4.94 million VUSD, a stablecoin issued by the Virtue lending protocol. The manipulation liquidated 45 users directly before exchange addresses were frozen and Virtue paused its own operations. Other applications that relied on the same Move feeds either paused or moved to alternative oracle providers.

SUI traded near $0.75 at the time of publication

SUI traded at $0.75 at the time of publication, up 0.6% over the past 24 hours but down 10% over the past seven days (CoinPaprika, 30 August 2026). The token's market value stood near $3.04 billion, which ranked it the 38th-largest cryptocurrency. SUI now trades about 86% below its January 2025 record high of $5.35. The price held steady on the day despite the vault losses across the Sui ecosystem.

The losses add to a run of Sui DeFi failures

The incident follows earlier security failures in Sui-based decentralised finance. In May 2025, the Sui DEX Cetus Protocol lost about $223 million to an exploit, and Sui validators froze roughly $162 million before the funds could leave the network. Cetus later restarted after validators returned the frozen funds and the Sui Foundation backed a recovery plan. In both cases, teams and validators paused activity or froze assets to contain the damage.

Full Sail has not disclosed a loss figure yet

As of publication, Full Sail had not released a dollar figure for the losses, a list of affected vaults, or a plan to compensate liquidity providers. According to the report, DeFiLlama data showed Full Sail held about $226,000 in total value locked, which makes it a small venue on Sui. The exchange said withdrawals will stay paused until it restores and verifies the integrity of its oracle feeds. Switchboard's investigation across the affected chains continued.