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Full Sail confirmed user fund losses from automated vaults after a suspected Switchboard oracle compromise on August 29. Meanwhile, Oracle shares recovered after Citi issued a bullish catalyst watch.
The crypto incident disrupted four Move-based networks. Separately, Oracle’s stock rebound centered on artificial intelligence cloud demand and the company’s large backlog.
Full Sail said users lost funds held in its automated vaults after the suspected Switchboard feed compromise. The Sui exchange then stopped deposits and withdrawals while its team investigated.
The exchange said transfers would remain unavailable until its team restores and verifies oracle integrity. Full Sail had not disclosed the loss amount, affected vaults, or any compensation plan.
Meanwhile, DeFiLlama data cited in the report placed Full Sail’s total value locked near $226,000. SUI traded around $0.75 and gained 0.6% over 24 hours. Still, SUI remained down 10% over seven days and about 86% below its January 2025 record of $5.35. Its market value stood near $3.04 billion.
Switchboard halted feeds on Sui, Aptos, IOTA, and Movement after detecting a potential compromise in its Move deployments. Its Solana feeds used separate code and continued operating.
On IOTA, an attacker used a compromised oracle key to set a token price at $10 million. The false price enabled about 4.94 million VUSD to enter circulation through Virtue. In turn, the manipulation directly liquidated 45 users before exchanges froze related addresses and Virtue paused operations. Other affected applications either stopped activity or shifted to alternative oracle providers.
The event followed the May 2025 Cetus Protocol exploit on Sui, which caused about $223 million in losses. Sui validators froze roughly $162 million before those funds left the network.
Also Read: Sui Prepares Quantum-Safe Accounts Without New Wallet Addresses
Separately, Citi placed Oracle on a 90-day upside catalyst watch and kept its Buy rating with a $330 price target. The call followed a steep decline in ORCL shares. Oracle traded 56% below its 52-week high of $345.72 and remained down about 37% over 52 weeks. The stock also stood 23% lower year-to-date.
Still, ORCL gained 26% over the past month after touching $114.50 on July 28. Shares rose 2.8% on August 26 and another 2% on August 27. Citi expects stronger AI infrastructure demand to support Oracle’s cloud growth, pricing, and profitability. Oracle also added about $85 billion sequentially in remaining performance obligations during its May quarter.
Can stronger AI demand turn Oracle’s backlog into enough growth to offset investor concerns about infrastructure spending and free cash flow pressure? Oracle trades at 23.4 times forward earnings, below peers and its historical average. Citi also identified Oracle’s next earnings report and late-October investor day as potential catalysts.
Full Sail’s losses kept attention on oracle security across Move-based DeFi after Switchboard halted feeds on four chains. Separately, Oracle stock extended its August recovery as Citi pointed to AI cloud demand, a $330 target, and upcoming catalysts. Both developments leave investors watching security controls and corporate execution in their respective markets.
