DeFi’s Vulnerability Exposed: Oracle Attack Leads to $3.4M Loss for Sui’s Typus
- Typus Finance lost $3.4M via oracle exploit on Sui blockchain, causing 35% token price drop. - Attackers manipulated oracle price feeds through inadequate authority checks, draining funds within hours. - Sui's DeFi security concerns resurface after Cetus Protocol's $200M exploit, highlighting recurring oracle vulnerabilities. - Experts warn oracle systems remain DeFi's critical weakness, demanding stronger audits and transparency post-exploit.
Typus Finance, an infrastructure platform focused on real yield within the
The exploit was aimed at Typus' TLP (Token Liquidity Pool) contract, which is central to its yield products. Attackers took advantage of a flaw caused by insufficient authority validation in the oracle mechanism, enabling them to drain assets in a matter of hours. Blockchain investigators observed that the stolen funds were quickly transferred to
Oracles—essential data bridges linking blockchains to external information—have become frequent targets in DeFi attacks. In Typus’ situation, the absence of strong safeguards allowed the attacker to manipulate price data, deceiving the protocol into releasing funds. “Oracles are vital to DeFi, but when left unsecured, they become its greatest vulnerability,” commented a blockchain security expert.
This is not an isolated event. The Sui network has encountered related weaknesses, such as the Cetus Protocol breach in May 2025, where fake tokens were used to extract $200–260 million in liquidity, as outlined in a Cointelegraph breakdown
The market responded quickly to the Typus incident. The TYPUS token’s value plummeted from $0.009 to $0.0055 in just a few hours—a 35% decline, far steeper than the broader crypto market’s moves (Bitcoin dropped 2%, Ethereum 4.3%). This sharp fall intensified existing concerns in the Sui community, which was still unsettled after the Cetus hack. “Each exploit chips away at user trust,” said a digital asset strategist. “People are now questioning if these platforms can innovate without sacrificing security.”
In response, Typus suspended all smart contract operations to prevent additional losses and began working with the Sui Foundation on an investigation. Still, the lack of a comprehensive recovery plan has left investors uncertain. Some critics argue that simply pausing the platform, while necessary, fails to address the underlying issues or restore user confidence. “Stopping contracts only buys time—it doesn’t solve the core problem,” one analyst noted. “Typus must demonstrate responsibility and openness.”
The Typus and Cetus breaches highlight a persistent dilemma in DeFi: balancing rapid innovation with robust security. While Sui promotes itself as a fast and scalable blockchain, these incidents have revealed weaknesses in its smart contracts and oracle infrastructure. According to a CoinDesk report, although total DeFi exploit losses have generally decreased since 2020, attacks on trading platforms and AMMs (Automated Market Makers) have become more frequent, showing that hackers are adapting their methods
Before the attack, Typus was recognized within the Sui ecosystem for its innovative, gamified yield offerings, such as DeFi Options Vaults and Tails NFTs. Its downfall underscores the dangers that come with complexity in DeFi protocols. “Pushing the envelope is exciting, but without strong security, everything can collapse,” a market analyst remarked.
Typus’ September 2025 report showed signs of resilience, with Total Value Locked (TVL) holding steady at $15.3 million despite market turbulence; the Perps TLP liquidity pool even grew by 7.4%, reflecting ongoing user trust
For Sui, these events highlight the urgent need for thorough audits, continuous monitoring, and diversified oracle solutions. “Security must come before speed,” a blockchain analyst emphasized. “The future of DeFi relies on trust, which is built through openness and resilience.”
As Typus and Sui work through these setbacks, investors are urged to be cautious, diversify their assets, and choose platforms with established security measures. Recovery will require more than technical fixes—it will take a cultural shift toward greater accountability in the rapidly evolving crypto world.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Why the COAI Index Is Plummeting and Its Implications for Technology Investors
- The COAI Index, tracking AI-focused crypto assets, has dropped 88% year-to-date in late 2025 due to deteriorating market sentiment, regulatory uncertainty, and sector volatility. - C3 AI , a key index constituent, reported a $116.8M net loss and 19% revenue decline in Q1 2025, compounded by a lawsuit and CEO departure. - Regulatory shifts, including the U.S. CLARITY Act and EU AI Act, created compliance burdens, deterring investment and straining smaller firms. - The index's 97% token concentration in to
The Rise of Dynamic Clean Energy Markets
- CleanTrade’s CFTC-approved SEF platform in 2025 revolutionizes clean energy markets by enabling transparent trading of VPPAs, PPAs, and RECs. - The platform addresses institutional barriers through standardized protocols, reducing counterparty risk and aligning with traditional energy exchange frameworks. - Within two months, it facilitated $16B in notional value, offering real-time liquidity and ESG-aligned tools to track carbon impact and prevent greenwashing. - Institutional investors now access diver
KITE Price Forecast Post-Listing: Understanding Institutional Attitudes and Market Fluctuations
- KITE's post-IPO price fell 63% by Nov 2025 amid divergent institutional strategies and retail sector uncertainty. - Analysts split between "Buy" ($30 target) and "Hold" ratings, citing operational gains vs. macro risks like the $3.4T deficit bill. - Q3 net loss (-$0.07 EPS) and 5,400% payout ratio highlight structural risks despite industrial real estate pivots and 7.4% dividend hike. - Institutional trading directly impacted price swings, with COHEN & STEERS' stake increase briefly stabilizing shares be
The Financial Wellness Factor: An Overlooked Driver of Sustainable Wealth Building
- Financial wellness combines objective financial health and subjective well-being to drive long-term wealth creation, beyond mere asset accumulation. - Behavioral traits like conscientiousness correlate with disciplined investing habits, while neuroticism increases impulsive decisions during market volatility. - Studies show financially literate investors maintain portfolios during downturns, with 38% of "content" quadrant participants achieving superior risk-adjusted returns. - Debt management and saving
Trending news
MoreCrypto prices
More
