Bitcoin Price Crashes to Zero on Paradex Exchange as Glitch Fuels Mass Liquidations
Decrypt • • business
Key Points:
- A database migration issue on decentralized exchange Paradex caused Bitcoin's price to show as $0, triggering a cascade of liquidations and necessitating a rollback of the Paradex blockchain to a previous stable state.
- The problem was identified early Monday morning, leading to a rollback to block 1604710 on the Starknet-based Paradex Chain, restoring all accounts to their state before the database maintenance.
- Paradex force-cancelled all open orders during the recovery, and by 5:00 a.m. ET confirmed that all user funds were safe, with services now fully operational.
- The exact financial impact of the liquidations remains unclear, but Paradex's perpetuals protocol currently holds about $641 million in open interest
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