Ch 1 (X in XY mode) is picked off before Ch 1 vertical position since that control is not functional in XY mode.
The only pick-off before the vertical position is in the vertical preamp to the Ch 1 trigger amplifier, on to the trigger amplifier, which has an X-axis output to the horizontal preamp, all controlled by XY and 1/XY signals generated by one closed contact of the S/div switch in the XY position.
XY and 1/XY have quite numerous points of function.
If higher amplitude signal still results in half moon display, I would suspect a component problem in this train.
Schematic Sheets 2, 3 and 5.