DeFi’s Vulnerability Exposed: Oracle Attack Leads to $3.4M Loss for Sui’s Typus

Typus Finance, an infrastructure platform focused on real yield within the

Sui

blockchain ecosystem, recently suffered a significant oracle attack, resulting in a $3.4 million loss and a rapid 35% drop in its token value. The breach, revealed on October 15, 2025, has reignited debates about the safety of decentralized finance (DeFi) platforms, especially on Sui, which has previously experienced major incidents such as the $200 million

Cetus Protocol

exploit in May 2025, as detailed in a Capwolf analysis

.

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

Ethereum

and converted into DAI, a common tactic for laundering stolen crypto.

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