I got no reply so far. I am trying to find out what happened. Sparrow wallet does not allow to set fee higher than 8,192.00 sats/vB which is 600$ now.

I used Sparrow wallet and it physically does not allow to set that high fee of 0.7 btc. No way I could set it. Could it potentially be a hack? If so it is odd that the entire change was used as a fee. Very strange case.
The latest Sparrow release (namely
v. 2.0.0) has addressed this issue manifesting warning before transaction broadcasting " if a transaction has a fee rate beyond the range slider maximum" . Thus despite such limit is in existence, wallet had
(and probably has) the potential to send all fund as a fee.