- Paradex refunded $650,000 to roughly 200 users after a maintenance error caused unintended liquidations.
- The problem arose during a planned 30-minute database upgrade when a race condition wrote corrupted market data onchain, and the team said it was not a hack, as detailed in the post-mortem.
- The platform temporarily disabled access, canceled open orders (except take-profit and stop-loss), and rolled back the chain to a pre-maintenance snapshot.
- Paradex performed its first chain rollback and implemented fixes including restart procedures, extra data validation, a revised scale-up process, and price-band protections.
- Similar incidents have disrupted other derivatives and crypto services, such as a previous pause at dYdX, a trading halt at CME Group after a data-center cooling failure, and a Cloudflare front-end outage that affected major platforms.
Paradex refunded $650,000 to about 200 users after a software error during planned maintenance caused unintended liquidations across multiple markets on Monday. The team said the issue resulted from a “race condition” during a 30-minute database upgrade that caused corrupted market data to be written onchain, and it emphasized the incident was operational rather than a security breach in a linked post-mortem.
In response, Paradex temporarily disabled platform access and canceled all open orders except take-profit and stop-loss orders. The team rolled back the chain to a snapshot taken before the maintenance window and described the action as “an undesired but necessary action to protect users and restore network integrity.”
The company called the rollback its first for the network and said it had implemented several safeguards to prevent a recurrence. Changes include updated service restart procedures, additional data validation checks, a revised scale-up process for full-downtime maintenance windows, and price-band protections during post-only trading periods.
This incident highlights how technical and operational failures can disrupt derivatives trading without any hack. In October, dYdX paused trading for about eight hours after a code-ordering error and delayed oracle restarts caused mispricing and liquidations, with a governance proposal to compensate affected traders from the protocol’s insurance fund.
In November, the CME Group status reported a roughly 10-hour trading halt after a cooling failure at a CyrusOne data center, and an internal Cloudflare degradation briefly blocked front ends for platforms including Coinbase, Blockchain.com, Bitmex, Ledger and DefiLlama. Additional information and the platform’s editorial policy are available.
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