On May 26, 2025, the SUI/USDT 4-hour chart formed a bullish flag pattern
A bullish flag appears when a sharp upward move is followed by a downward-sloping channel, typically signaling the potential continuation of the prior uptrend.
If this bullish flag confirms, the price of SUI could rally by 41% from the current level of $3.56 to the projected target of $5.02. The breakout target is based on the height of the previous flagpole, measured from the bottom of the initial rally to the start of consolidation.
Meanwhile, the Relative Strength Index (RSI), a momentum indicator, reads 41.03, which remains below the neutral 50 level. This suggests the token is not overbought, and there is room for upward movement.
At the same time, the 50-period Exponential Moving Average (EMA), currently at $3.72, acts as dynamic resistance. A close above this EMA and the upper red trendline would validate the breakout signal.
Volume has remained relatively steady, but a confirmed breakout should come with a strong spike in buying volume to support the move. If volume stays low, the pattern could fail or delay the breakout.
In summary, the chart setup indicates a possible bullish breakout toward $5.02 if SUI breaks out above the flag’s resistance line with strong confirmation.
Cetus Protocol Exploit Halts Operations, Triggers $223M Loss and Sui Token Selloff
Cetus Protocol, a decentralized exchange (DEX) on the Sui Network, suspended smart contract operations on May 22, 2025, following a major exploit involving oracle manipulation. The attack caused an estimated $223 million loss and triggered a sharp drop in token prices across the Sui ecosystem.
In a statement, Cetus confirmed the breach and disclosed that the attacker stole approximately $223 million. The team acted immediately to pause the smart contract, successfully freezing $162 million of the compromised funds.
“We have confirmed that an attacker has stolen approximately $223M from Cetus Protocol,” the team stated.
“We took immediate action to lock our contract preventing further theft of funds… We are working with the Sui Foundation and other ecosystem members… to recover the remaining stolen funds.”
Attack Used Oracle Manipulation, Not External Hack
The exploit appears to have stemmed from a vulnerability in Cetus Protocol’s internal pricing mechanism. The team initially denied a hack, posting on Discord that the platform “detected a bug in the oracle.”
Blockchain analytics firm Lookonchain reported that the attacker drained over $260 million in assets, most of which were swapped into USDC and bridged to Ethereum. Approximately $60 million in USDC had already been transferred at the time of reporting.
Alex Horlan, CTO at HackenProof, explained that the attacker used low-liquidity injections to manipulate pool states, enabling them to extract SUI and USDC without providing real value. He pointed to possible flaws in key functions that handle token ratios and rounding.
Liquidity Pools and Oracle System Under Scrutiny
Cetus Protocol runs a dual oracle model. It uses internal on-chain oracles derived from concentrated liquidity pools and also integrates with the decentralized oracle service Pyth Network. These systems are meant to reduce off-chain dependencies and price manipulation risks.
However, it remains unclear whether the vulnerability originated in Cetus’s internal pricing logic or in the external oracle feed. As of now, Pyth Network has not issued a statement.
The exploit significantly impacted the broader Sui ecosystem. According to DeFiLlama, Cetus’s total value locked (TVL) fell over $200 million, now sitting near $75 million. Cetus’s native token, CETUS, dropped 24% to $0.15.
Seven of 11 Sui-based tokens tracked by CryptoSlate also registered losses of at least 5%. Despite the broader selloff, the SUI token itself only showed a slight decline.
Rosco Kalis, founder of Revoke Cash, noted that most of the stolen funds belonged to liquidity providers.
“This also caused a lot of Sui token prices to crash, affected normal users as well,” he said.
While investigations continue, the broader crypto community has started offering support. Former Binance CEO Changpeng Zhao said his team had reached out to help Cetus recover.
Cetus has not yet shared a recovery plan. Further updates are expected once the investigation progresses.
Jackson.io Launches Points System on Sui, Raises $10M in Seed Round
Moreover, Jackson.io, a decentralized Web3 gaming protocol built on the Sui blockchain, launched its Beta platform alongside a points system and confirmed a $10 million seed funding round. The investment, led by SSSSSSSSS Capital Tokyo, will support platform development and global user growth.
The Jackson.io platform introduces a GameFi structure where token stakers receive a share of platform revenues. The team includes professionals from the fintech and gaming industries with backgrounds in publicly listed tech firms and regulated financial institutions.
Since the Beta launch, Jackson.io released three test games, generating over $700,000 in betting volume. The platform now counts more than 2,000 betting participants and 800 liquidity stakers, signaling early adoption of its revenue-sharing model.
Jackson.io’s Sharkz NFT campaign introduced a new airdrop format requiring participants to upload a selfie featuring a “J gesture.” This method helped verify human users and reduce bot interference. The campaign drew over 10,000 participants, with 3,000 verified gestures and nearly 8,000 unique NFT holders.
Jackson.io recently hosted two community missions that distributed over 5,000 SUI tokens. Thousands of users participated in the events, helping convert community engagement into on-chain activity.