The price of Bitcoin briefly dropped to $0 Starknet-based decentralized exchange Paradex overnight, after a database migration issue affected the Paradex blockchain, its block explorer, bridge, and API, triggering mass liquidations before prices snapped back.
Paradex’s $0 Bitcoin Glitch
An issue was first flagged on the Paradex status page at 12:36 a.m ET on Monday, shortly after users reported an outage as the price of Bitcoin sank to $0 on the exchange. The price bounced back shortly after– by which time thousands of positions had already been liquidated.
“Okay, when I posted the screenshot, I thought it was a UI bug,” one user noted in an X post as the price glitch unfolded. “Then I saw on the computer that the price came back after going to $0. Now there are thousands of liquidations. This doesn’t look good for Paradex.”
Paradex later identified the issue in a Discord announcement and started initiating a fix that resulted in rolling back the state of Paradex Chain, a blockchain built using the Ethereum layer-2 scaling network, Starknet stack, to block 1604710.
“This is the time before the DB maintenance and is the last known correct state. All accounts will be restored to the state before the DB maintenance. We will provide more updates as we continue with rollback,” the status update states.
The exchange did not reveal how many traders were impacted or the value of positions liquidated during the glitch. The team warned users to be cautious of impersonators and fake support accounts during the outage. The DEX advised traders to rely only on its official status page and verified accounts.
Paradex is a leveraged crypto derivatives venue that allows users to trade leveraged crypto derivatives without giving custody of funds to a centralized intermediary.
It has grown into a major platform for on-chain derivatives trading. According to data from DefiLlama, Paradex ranks eighth in 30-day trading activity across the industry, notching roughly $37 billion in trading volume during the past 30 days.
In an update later, Paradex confirmed that all user funds were safe as its recovery process was ongoing.
“We can confirm that all user funds are SAFU. Due to the complexity of the recovery process, we do not have a confirmed ETA at this time.”
All platform and vault withdrawals had been restarted, according to a subsequent update on the status page. But the Gigavault deposits and withdrawals would remain temporarily halted for up to 24 hours, the exchange clarified.
Paradex’s Monday incident came amid a tumultuous period for BTC, which fell from above $95,000 to sub-$92K after a market-wide tariff-driven wobble.
Source: https://zycrypto.com/bitcoin-briefly-crashes-to-0-on-obscure-crypto-exchange-paradex-due-to-glitch-heres-why/
