Full Sail Confirms Sui Vault Losses as Switchboard Halts 4 Chains

Sui-based decentralized alternate Full Sail has confirmed a lack of person funds from its automated vaults after a suspected compromise of Switchboard oracle feeds, an incident that has compelled the multi-chain oracle supplier to halt operations throughout 4 Transfer-language blockchains and pushed at the least one lending protocol on IOTA into emergency shutdown. 

Deposits and withdrawals on Full Sail stay paused as investigators work to determine the total scope of the breach.

Full Sail’s Announcement

In a submit printed on X at 12:34 PM UTC on August 29, 2026, the Full Sail staff said it was “investigating a safety incident affecting Full Sail vaults following a suspected @switchboardxyz oracle compromise on @SuiNetwork” and acknowledged bluntly that “a lack of funds has been confirmed.”

The protocol added that “deposits and withdrawals will stay paused till oracle integrity is restored and verified to forestall additional losses.” As of press time, the staff has not printed a greenback determine for the loss, a listing of affected vaults, or a compensation plan for impacted liquidity suppliers.

Switchboard Halts Transfer-Primarily based Deployments

Hours after Full Sail’s disclosure, Switchboard confirmed that experiences had emerged of a possible compromise of its Transfer-language implementations. The oracle community stated contributors had coordinated with ecosystem groups and safety organizations to halt operations on Aptos, Sui, IOTA, and Motion whereas an investigation is carried out.

Switchboard famous it had not seen comparable compromise experiences on Solana, the place its infrastructure runs on separate code, however nonetheless suggested customers to “at the least briefly” migrate to different oracle options till the evaluate is full. The oracle community stated extra particulars would observe.

The halt has ripple results far past Full Sail. Any lending market, vault technique, or derivatives venue that relied on Switchboard’s Transfer feeds is now both paused or in the midst of a rushed migration to different suppliers akin to Pyth, Chainlink, or RedStone.

The IOTA Angle: $10 Million Worth Print and 4.94M VUSD Minted

Based on a report, an attacker exploited a compromised oracle key to control the IOTA value feed, briefly setting the token’s value to $10 million. With the inflated value reside on-chain, the attacker minted roughly 4.94 million VUSD by the Advantage CDP protocol, which lets customers borrow the USD-pegged stablecoin in opposition to IOTA and stIOTA collateral.

The fallout hit 45 customers by direct liquidations; alternate addresses have been frozen in response to the disruption, and Advantage itself was halted. A separate neighborhood post from Liberty Swap had earlier flagged the identical figures earlier than they have been independently reported.

The choice to halt all Transfer-based deployments moderately than simply IOTA’s feed suggests the vulnerability could sit on the architectural degree moderately than being network-specific. Transfer is the programming language initially developed at Meta for the Diem undertaking and now underpins Aptos, Sui, Motion, and IOTA’s newer smart-contract layer.

What Full Sail Is and How Giant It Is

Full Sail markets itself as a capital-efficient, vote-escrow DEX constructed on Sui, backed by the Sui Basis and incubated by Aftermath Finance. It is usually a member of Circle’s Alliance Program and was the primary Sui DEX to implement dynamic charges, based on its personal web site. The protocol runs concentrated liquidity swimming pools alongside automated vaults that rebalance positions utilizing exterior value information.

Protocol documentation lists Switchboard because the exterior oracle, cross-checked in opposition to on-chain pool costs with a statistical circuit breaker meant to block anomalous updates and pause emissions throughout emergencies. These protections have been designed for a situation by which an exterior feed diverges sharply from the pool value. 

The confirmed vault losses recommend both a path these checks didn’t cowl, or a compromise deep sufficient that the comparability itself couldn’t be trusted. Full Sail has not clarified which.

On measurement, DeFiLlama at the moment lists Full Sail’s complete worth locked at roughly $226,299.36, with a 2.3% lower over the previous 30 days, rating it #387 amongst DEX protocols tracked by the aggregator. The platform has processed $9.4 million in DEX quantity over the previous 30 days and generated $20,220 in charges throughout that window. 

In April 2026, Full Sail stated its SUI/USDC vault capability had been raised to $500,000. Even a full vault drain would subsequently possible be significantly smaller in absolute phrases than earlier Sui incidents.

A Recurring Sample in Sui DeFi

Sui’s DeFi stack has now weathered a string of oracle-linked failures. In Could 2025, the community’s largest DEX, Cetus Protocol, was drained of roughly $223 million after an attacker exploited an integer-overflow flaw in a shared math library, an incident The Crypto Instances coated as it unfolded. 

Sui validators later intervened to freeze $162 million of the stolen funds, and the protocol finally restarted with a $30 million USDC mortgage from the Sui Basis.

In October 2025, Sui-based Typus Finance suffered a $3.44 million exploit after an attacker bypassed authorization checks in an unaudited customized oracle contract utilized by its TLP liquidity pool. These earlier incidents have been protocol-specific design failures. This weekend’s occasion is being framed as a shared Switchboard Transfer-stack difficulty, which explains why 4 chains paused in unison.

What Is Confirmed and What Is Not

Confirmed at this stage: Full Sail vaults have been affected, funds have been misplaced, the suspected trigger is a Switchboard oracle difficulty on Sui, deposits and withdrawals are paused, Switchboard halted Transfer-based oracle companies on Sui, Aptos, IOTA, and Motion, and Switchboard has not reported a comparable Solana compromise.

Not but confirmed: the precise greenback loss at Full Sail, the exact assault vector (key compromise, Transfer implementation bug, feed manipulation, or a mix), whether or not Full Sail’s circuit breaker fired as designed, what number of different Sui or Aptos apps misplaced funds versus solely paused as a precaution, and any person reimbursement plan. The $10 million IOTA value print and 4.94 million VUSD determine relate to the IOTA/Advantage incident and shouldn’t be handled because the Full Sail loss determine.

What Occurs Subsequent

Full Sail stated it is going to submit updates by its X account. Switchboard has equally promised additional particulars. Till formal post-mortems are printed, customers with funds in Full Sail vaults can not deposit or withdraw, and apps on the paused chains have been suggested to change oracles or await the all-clear.

For the broader ecosystem, the operational threat is bigger than Full Sail itself. Any lending, vault, or derivatives protocol that handled Switchboard Transfer feeds as reside fact is now on a compelled pause or a rushed migration, whereas protocols that layered redundant oracle sources are studying the worth of that design alternative in actual time.

It is a creating story. Loss quantities and root-cause particulars could change when official post-mortems are printed.

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