Activity Theory can offer insights into learning processes that are facilitated by Learning Management Systems. Contradictions, as a basic principle of Activity Theory, assist in identifying the tensions and conflicts that emerge in systems of online learning environments. Using Activity Theory as its research framework, this study focuses on the contradictions that emerged in the form of tensions, frustrations, misunderstandings and miscommunication in a fully online university course in New Zealand. The data collection methods of this case study included individual interviews, online activity observation and documents analysis. Outlining some of the findings of the study, this paper will discuss how students’ participation in learning activities facilitated by Moodle was affected by these contradictions.