We report the existence of two competing mechanisms in the current-driven electrical breakdown of vanadium sesquioxide (V 2 O 3) and vanadium dioxide (VO 2) nanodevices. Our experiments and simulations show that the competition between a purely-electronic mechanism (PE) and an electro-thermal (ET) mechanism, suppressed in nanoscale devices, explains the current driven insulator-to-metal phase transition (IMT). We find that the relative contribution of PE and ET effects is dictated by thermal coupling and resistivity, a discovery which disambiguates a long-standing controversy surrounding the physical nature of the current-driven IMT in vanadium oxides. Furthermore, we show that the electro-thermally driven IMT occurs through a nanoscopic surface-confined filament. This nano-confined filament has a very large thermal gradient, thus generating a large Seebeckeffect electric field.