The Oculus Rift S is still in its infancy, and like any new device, it has a few kinks that need to be worked out. One issue that seems to be occurring for more than a few people is Touch tracking loss, which results in motion controllers that can be rotated in place but can't be moved around with the usual six degrees of freedom (6DoF). While there isn't yet a definitive answer as to what is causing this problem, there are some potential fixes you can try out.
Full story from the WindowsCentral blog...