What happened on the Paradex crypto exchange?

Paradex experienced a technical glitch that set Bitcoin's price to $0, leading to unwarranted liquidations.

How will Paradex fix the $0 Bitcoin price issue?

Paradex plans to rollback its database to a state before the glitch to reverse the affected transactions.

Are user funds safe after the Paradex glitch?

Yes, Paradex has stated that all user funds are safe despite the incident.

Home / Technology / Crypto Glitch: Bitcoin Priced at $0, Users Liquidated

Crypto Glitch: Bitcoin Priced at $0, Users Liquidated

20 Jan

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Summary

A technical glitch on Paradex briefly set Bitcoin's price to $0.
The bug led to widespread, unwarranted liquidations on the perpetuals exchange.
Paradex plans to rollback its database to reverse the faulty transactions.

Crypto Glitch: Bitcoin Priced at $0, Users Liquidated

A technical malfunction on the decentralized crypto exchange Paradex, an appchain on Starknet, led to Bitcoin being incorrectly valued at $0. This erroneous pricing resulted in a large number of unwarranted liquidations, as Paradex operates as a perpetuals exchange where trades are leveraged perpetual futures contracts. The incident occurred during routine database maintenance, prompting the exchange's team to plan a state rollback.

The team behind Paradex has stated that all user funds are secure and intends to reverse all transactions that occurred due to the false market data. While the exact number of affected users and liquidations remains unclear, the exchange has averaged over $1 billion in daily trading volume recently. Trading on Paradex is currently suspended until the rollback is completed, with no estimated time for resumption.