Paradex, a decentralized perpetual futures exchange, confirmed it rolled back its application-specific blockchain to a prior state following a technical glitch that caused Bitcoin's price to erroneously drop to $0 on the platform, triggering mass liquidations. The exchange has since resumed trading, assuring users that all funds are safe.
đIncident Overview
âȘïž Cause: The glitch stemmed from a faulty database migration during scheduled maintenance on January 19, 2026.
IâȘïž mpact: The error caused incorrect pricing data, leading to a cascade of automated liquidations as trading algorithms reacted to the zero price feed.
âȘïž Response: Paradex halted services for approximately eight hours and rolled back the chain state to block 1,604,710, which was the last known correct state before the maintenance began. This action effectively reversed all trades and liquidations that occurred during the outage.
âȘïž Mitigation: All open orders were force-canceled, except for take-profit/stop-loss (TPSL) orders, as part of the recovery process.
đ»Key Insights
âȘïž User funds are reportedly safe, and accounts were restored to their status prior to the maintenance.
âȘïž The incident has rekindled debate within the crypto community regarding the use of blockchain rollbacks, a controversial measure that challenges the core principle of blockchain immutability.
âȘïž The native Starknet token (STRK) saw its price fall by approximately 3.6% in the aftermath of the incident, reflecting broader ecosystem concerns.
âȘïž Paradex, which operates as a layer-2 application chain on Starknet, is a significant player in the perpetual DEX market, with over $37 billion in 30-day trading volume.
#paradex #BTCfall #massliquidation #BTC #solana $ETH $SOL $BTC
