$IOTA Price Manipulation Sparks Cross-Chain Liquidations

A recent oracle compromise has triggered liquidations and frozen vaults across multiple DeFi networks.

The incident involved Switchboard, an oracle provider that supplies price data to DeFi applications. Contributors halted its deployments on Aptos, Sui, IOTA, and Movement after reports of a potential Switchboard Move oracle compromise in its Move-language implementations.

At least three applications reported losses, freezes, or precautionary access restrictions as Switchboard advised users to migrate temporarily to alternatives. The provider said it had not received similar reports about its Solana implementation, but it has not published a root cause or a timetable for restoring the four Move deployments.

Virtue, a $IOTA credit protocol, provided the most detailed account of the incident. An attacker gained control of the signing keys used by all 14 oracles on Switchboard's IOTA mainnet queue and pushed IOTA's reported price to $10 million.