What you saw on Paradex was not a real market crash, but a critical technical error that occurred a couple of days ago (Monday, January 19, 2026).
Here I explain exactly what happened and what is being done about it:
1. Why did the price drop to 0?
During a routine maintenance and database migration process, Paradex's pricing system (oracles) failed. This caused, for a brief moment, the price of Bitcoin and other assets to be recorded as $0.00 within the platform.
2. The chain effect: Massive liquidations
As Paradex is a perpetual futures exchange, it uses an automated liquidation engine. When the system "read" that the price was zero:
Interpreted that all long positions (buys) had lost all their value.
Activated massive automatic liquidations, closing thousands of accounts in seconds.
It is important to note that the price of Bitcoin in the rest of the world remained normal (around $92,000); the problem was exclusive to the Paradex infrastructure.
3. The solution: A "Rollback"
To correct the disaster, the Paradex team took an unusual measure in the crypto world: they decided to roll back the chain.
They returned the platform's state to block 1,604,710 (the exact point before the error started).
This means that erroneous liquidations were canceled and user balances were restored to how they were before the failure.
Current status of the situation
Funds: The team has confirmed that the funds are SAFU (safe).
Operations: Trading has already resumed, although many open orders (except Take Profit and Stop Loss) were canceled during the recovery process.
Trust: The event has generated much debate, as performing a "rollback" goes against the idea of blockchain immutability, but it was the only way to return the money to those who were liquidated due to the error.
Note: If you had open positions at that time, I recommend checking your account history to confirm that your balance has been restored correctly to the state prior to the mentioned block.
Did you have any open position or were you directly affected by the system closure? I can help you look for the official compensation announcement if you need it.