Paradex will roll back chain state after an error sent perpetual futures prices to zero and triggered thousands of liquidations shortly after maintenance at about 4:30am London time. Social media posts show mass liquidations occurring within seconds. (social media posts)
Three hours later, Clement Ho, the exchange’s director of engineering, said the team will revert to block 1604710 (4:27:54 UTC). “We have identified the issue and will be rolling back chain state to block 1604710 (4:27:54 UTC),” he wrote.
The project’s status page said recovery is underway and assured users that funds are safe. “Recovery efforts are ongoing. We can confirm that all user funds are SAFU,” the page stated (status page).
The exchange closed access to its block explorer and has not confirmed how many users were affected or the total value liquidated. Data shows Paradex processed almost $1.6 billion in trades the day before.
CoinGecko reported about $652 million in open interest over 24 hours, and users had deposited roughly $225 million. The platform is incubated by Paradigm, which raised $35 million in 2021 at a $400 million valuation.
Other perps venues have faced problems recently, including Hyperliquid, which lost tens of millions after market attacks. (Ed. note: Rollbacks contradict blockchain immutability.)
Paradex said it has no confirmed ETA for when users can access trapped funds. “Due to the complexity of the recovery process, we do not have a confirmed ETA at this time,” and “We will provide further updates as they become available.”
