AlphaFi is winding down AlphaLend after an ALPHA oracle misconfiguration allowed certain collateral-backed borrowing positions to become substantially undercollateralized, creating bad debt. The Sui Foundation fully covered the shortfall, leaving AlphaFi solvent and protecting users' principal and generated yields. The protocol has entered maintenance mode: new AlphaLend deposits and loans are paused, while withdrawals remain available and existing borrowers have been asked to unwind positions. Slush Wallet users can withdraw directly from SUI, WAL, DEEP and USDC strategies immediately after lock periods were removed; pending withdrawal requests should be canceled and resubmitted. AlphaFi will assist the Sui Foundation's investigation and recovery efforts, and plans to complete its wind-down after the final user withdrawal. Sui said the security tooling that detected the problem is scheduled for formal launch later this fall for Sui DeFi protocols.