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$200 million vanishes from Cetus Protocol of Sui ecosystem due to an oracle bug, crippling top DEX and shaking confidence.
Author: Chirag Sharma
Written On: Thu, 22 May 2025 18:10:29 GMT
In a devastating event for the SUI ecosystem, over $200 million has vanished from Cetus Protocol, the main decentralized exchange (DEX) and liquidity engine on the Sui blockchain.
What was first thought to be a hack has now been confirmed as something even more alarming: a critical oracle bug.
Reports flooded in early this morning after users noticed funds draining rapidly from major SUI-based liquidity pools. The damage was immediate and catastrophic:
The DeFi community feared a major exploit—until Cetus Protocol stunned everyone with a Discord announcement:
“This is not a hack. It’s a bug in our oracle feed.”
This single flaw allowed attackers to manipulate prices and drain pools, bypassing typical security defenses. The Sui blockchain itself remains unaffected, but Cetus’s oracle system proved to be a fatal weakness.
Cetus’s collapse has triggered a wave of distrust across the Sui ecosystem:
The Cetus team is now working closely with Mysten Labs—core developers of Sui—to:
This event is not a failure of the Sui network or its bridges, but it’s a painful reminder:
DeFi protocols are only as strong as their weakest link.
Even on a performant and secure chain like Sui, a flawed oracle or centralized component can bring down an entire ecosystem.
With $200 million gone and trust shattered, Cetus faces a long road to redemption. The team must act fast—not only to recover funds but to restore user belief in Sui’s DeFi future.
The entire DeFi world is watching.
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What Happened?
Fallout for Sui DeFi
Not a Blockchain Flaw, But Still a DeFi Red Flag
What Comes Next?
Community Reactions
