Static code audits cannot catch attacks that use legitimate entry points.
The Volo incident wasn't a contract bug — it was a privilege design flaw. When a single Keeper holds both `OperatorCap` and oracle submission rights, the loss_tolerance check becomes a self-validating loop the moment that key is compromised.
Move's type system protects you from many things. It does not protect you from trusting the wrong signer.
🚨 Incident Analysis: Volo Protocol (Sui) Vault Exploit
On 2026-04-21, Volo Protocol on Sui suffered a vault theft resulting in ~$3.27M in direct losses, plus ~$230K in LP share-ratio collapse — combined impact of ~$3.5M.
BitsLab's post-incident analysis below. 👇