TL;DR
- Paradex executed a rollback to block 1,604,710 after a database migration error sent Bitcoin’s price to $0 and triggered mass liquidations.
- The faulty migration produced incorrect pricing data, forced the cancellation of open orders except TPSL orders, and left the interface, bridge, and RPC services offline.
- Trading resumed after eight hours, the rollback erased trades and positions opened after the failure, and Starknet’s STRK token fell about 3.6% following the incident.
Paradex, a decentralized derivatives exchange built on Starknet, executed a chain rollback after a technical failure pushed Bitcoin’s price to $0 on the platform for several hours. The incident was linked to an error during an internal database migration carried out as part of maintenance operations.
What Happened?
According to the Paradex team, the migration generated incorrect pricing data, which triggered a wave of mass liquidations across open positions. As part of the incident, all open orders were forcibly canceled, except for take-profit and stop-loss (TPSL) orders. The platform remained halted while the team assessed the scope of the issue.
To restore the system state, Paradex decided to reset the chain to block 1,604,710, corresponding to the moment prior to the faulty migration. The rollback removed all transactions, trades, and position adjustments executed after that block. Account balances were returned to their pre-incident state.
During the outage, several core components of the platform stopped functioning. Users reported failures in the interface, RPC services, and the bridge, preventing trading, position management, and withdrawals. Paradex stated that user funds remained intact throughout the recovery process.
Paradex Has Not Announced Compensation for Affected Users
The exchange resumed operations at 12:10 UTC after nearly eight hours of downtime. In an update published on its official channels, the team said the recovery process was complex and that there was no immediate timeline while the rollback was being executed. Service normalization was later confirmed.
Paradex recorded trading volume of approximately $37 billion in the 30 days prior to the incident. Following the event, Starknet’s STRK token fell by around 3.6%, according to market data.
The rollback also erased profits, losses, and positions opened or closed during the failure window. Some users reported unusual funding rates and atypical position behavior prior to the chain reversal. As of the service resumption, Paradex has not communicated a formal compensation scheme for users who may have incurred losses
