Cold multi-DoF forming (CMDFF) has a broad applicative perspective in manufacturing the complex thin-walled structural components of hard-deforming materials. During CMDFF process, the nonlinear die–workpiece interactions cause complex macro and micro deformation behaviors, which has great impact on cracking failure and thus affected the forming quality and forming limit. In this study, the cracking failure behavior of Al7075 sheet during CMDFF process was systematically investigated. The evolutions of plastic deformation uniformity and microstructure uniformity were analyzed, and the final fracture surface morphology was characterized. Moreover, the slip behaviors were analyzed to discuss the fracture failure mechanism by CMDFF deformation. The results show that the strong lattice rotation caused severe dislocation clustering along randomly activated slip systems during CMDFF process, leading to UFG formation and stress localization throughout original cell blocks. Due to the more sufficient τ-fiber transformation and obvious Y texture preferential formation in center layer of CMDFF deformed sheet, it is difficult for dislocation gliding along slip systems in these high-M “hard grains”, resulting in severer stress localization in center layer. Once the stress localization reached critical value, micro-cracks got initiated and coalesced in center layer, and rapidly propagated to other region, resulting in the overall fracture.