Sui-based decentralized exchange Full Sail has confirmed a loss of user funds from its automated vaults after a suspected compromise of Switchboard oracle feeds, an incident that has forced the multi-chain oracle provider to halt operations across four Move-language blockchains and pushed at least one lending protocol on IOTA into emergency shutdown.
Deposits and withdrawals on Full Sail remain paused as investigators work to establish the full scope of the breach.
Full Sail’s Announcement
In a post published on X at 12:34 PM UTC on August 29, 2026, the Full Sail team said it was “investigating a security incident affecting Full Sail vaults following a suspected @switchboardxyz oracle compromise on @SuiNetwork” and stated bluntly that “a loss of funds has been confirmed.”
The protocol added that “deposits and withdrawals will remain paused until oracle integrity is restored and verified to prevent further losses.” As of press time, the team has not published a dollar figure for the loss, a list of affected vaults, or a compensation plan for impacted liquidity providers.
Switchboard Halts Move-Based Deployments
Hours after Full Sail’s disclosure, Switchboard confirmed that reports had emerged of a potential compromise of its Move-language implementations. The oracle network said contributors had coordinated with ecosystem teams and security organizations to halt operations on Aptos, Sui, IOTA, and Movement while an investigation is conducted.
Switchboard noted it had not seen similar compromise reports on Solana, where its infrastructure runs on separate code, but still advised users to “at least temporarily” migrate to other oracle solutions until the review is complete. The oracle network said more details would follow.
The halt has ripple effects far beyond Full Sail. Any lending market, vault strategy, or derivatives venue that relied on Switchboard’s Move feeds is now either paused or in the middle of a rushed migration to alternative providers such as Pyth, Chainlink, or RedStone.
The IOTA Angle: $10 Million Price Print and 4.94M VUSD Minted
According to a report, an attacker exploited a compromised oracle key to manipulate the IOTA price feed, temporarily setting the token’s price to $10 million. With the inflated price live on-chain, the attacker minted approximately 4.94 million VUSD through the Virtue CDP protocol, which lets users borrow the USD-pegged stablecoin against IOTA and stIOTA collateral.
The fallout hit 45 users through direct liquidations; exchange addresses were frozen in response to the disruption, and Virtue itself was halted. A separate community post from Liberty Swap had earlier flagged the same figures before they were independently reported.
The decision to halt all Move-based deployments rather than just IOTA’s feed suggests the vulnerability may sit at the architectural level rather than being network-specific. Move is the programming language originally developed at Meta for the Diem project and now underpins Aptos, Sui, Movement, and IOTA’s newer smart-contract layer.
What Full Sail Is and How Large It Is
Full Sail markets itself as a capital-efficient, vote-escrow DEX built on Sui, backed by the Sui Foundation and incubated by Aftermath Finance. It is also a member of Circle’s Alliance Program and was the first Sui DEX to implement dynamic fees, according to its own website. The protocol runs concentrated liquidity pools alongside automated vaults that rebalance positions using external price data.
Protocol documentation lists Switchboard as the external oracle, cross-checked against on-chain pool prices with a statistical circuit breaker intended to block anomalous updates and pause emissions during emergencies. Those protections were designed for a scenario in which an external feed diverges sharply from the pool price.
The confirmed vault losses suggest either a path those checks did not cover, or a compromise deep enough that the comparison itself could not be trusted. Full Sail has not clarified which.
On size, DeFiLlama currently lists Full Sail’s total value locked at roughly $226,299.36, with a 2.3% decrease over the past 30 days, ranking it #387 among DEX protocols tracked by the aggregator. The platform has processed $9.4 million in DEX volume over the past 30 days and generated $20,220 in fees during that window.
In April 2026, Full Sail said its SUI/USDC vault capacity had been raised to $500,000. Even a full vault drain would therefore likely be considerably smaller in absolute terms than earlier Sui incidents.
A Recurring Pattern in Sui DeFi
Sui’s DeFi stack has now weathered a string of oracle-linked failures. In May 2025, the network’s largest DEX, Cetus Protocol, was drained of approximately $223 million after an attacker exploited an integer-overflow flaw in a shared math library, an incident The Crypto Times covered as it unfolded.
Sui validators later intervened to freeze $162 million of the stolen funds, and the protocol eventually restarted with a $30 million USDC loan from the Sui Foundation.
In October 2025, Sui-based Typus Finance suffered a $3.44 million exploit after an attacker bypassed authorization checks in an unaudited custom oracle contract used by its TLP liquidity pool. Those earlier incidents were protocol-specific design failures. This weekend’s event is being framed as a shared Switchboard Move-stack issue, which explains why four chains paused in unison.
What Is Confirmed and What Is Not
Confirmed at this stage: Full Sail vaults were affected, funds were lost, the suspected cause is a Switchboard oracle issue on Sui, deposits and withdrawals are paused, Switchboard halted Move-based oracle services on Sui, Aptos, IOTA, and Movement, and Switchboard has not reported a comparable Solana compromise.
Not yet confirmed: the exact dollar loss at Full Sail, the precise attack vector (key compromise, Move implementation bug, feed manipulation, or a combination), whether Full Sail’s circuit breaker fired as designed, how many other Sui or Aptos apps lost funds versus only paused as a precaution, and any user reimbursement plan. The $10 million IOTA price print and 4.94 million VUSD figure relate to the IOTA/Virtue incident and should not be treated as the Full Sail loss figure.
What Happens Next
Full Sail said it will post updates through its X account. Switchboard has similarly promised further details. Until formal post-mortems are published, users with funds in Full Sail vaults cannot deposit or withdraw, and apps on the paused chains have been advised to switch oracles or wait for the all-clear.
For the broader ecosystem, the operational risk is larger than Full Sail itself. Any lending, vault, or derivatives protocol that treated Switchboard Move feeds as live truth is now on a forced pause or a rushed migration, while protocols that layered redundant oracle sources are learning the value of that design choice in real time.
This is a developing story. Loss amounts and root-cause details may change when official post-mortems are published.
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