A suspension system for a mobile machine is disclosed. The suspension system may have a seat operatively connected to a cabin floor of the mobile machine, a cylinder connected between the seat and the cabin floor, and a spring associated with the cylinder. The suspension system may also have at least one valve configured to regulate fluid flow into and out of the cylinder, and a controller in communication with the at least one valve. The controller may be configured to detect a failure condition of the suspension system. In response to detection of the failure condition, the controller may be further configured to cause the at least one valve to move to a default position at which fluid flow into and out of the cylinder is restricted by an amount that still allows fluid flow through the at least one valve.