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Switchboard oracle pause hits DeFi apps on Move chains
Full Sail confirmed vault losses and kept deposits and withdrawals paused until oracle integrity is restored and verified, while Virtue reported $10 million price manipulation that triggered 47 liquidations.
Switchboard said it halted oracle deployments on Aptos, Sui, IOTA and Movement after reports of a potential compromise in Switchboard Move-language implementations, and warned users to temporarily migrate to alternatives while it investigated. The provider has not published a root cause or a timeline for restoring the affected Move deployments, and it said it has not received similar reports for its Solana implementation.
Several DeFi applications reported losses, freezes or precautionary access restrictions. Sui-based exchange Full Sail confirmed that its vaults lost funds and said deposits and withdrawals will remain paused until oracle integrity is restored and verified, without identifying the specific vaults or assets or quantifying the loss.
Full Sail’s documentation describes automated rebalancing of concentrated positions using real-time market data, along with oracle protection checks that can compare Switchboard prices with on-chain pool prices and block prices or pause emissions. The company did not explain whether those controls were triggered for the affected vaults or whether they were tied to the reported losses.
The most detailed account came from IOTA credit protocol Virtue, which said an attacker gained control of signing keys used by all 14 Switchboard oracles on its IOTA mainnet queue and pushed IOTA’s reported price to $10 million. Virtue said the attacker deposited 1 IOTA and minted about 4.94 million VUSD, after which the feed was pushed near zero, triggering 47 liquidations across 45 users, and leading Virtue to freeze borrowing, repayment, deposits, withdrawals, liquidations and flash loans while warning that VUSD was materially undercollateralized during remediation.
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