Headline: Bitcoin Reads $0 on Paradex as Database Migration Glitch Sparks Mass Liquidations — Platform Rolls Back Chain State
Paradex, a perpetuals decentralized exchange built on a Starknet-based chain, briefly showed Bitcoin trading at $0 overnight after a database migration error touched off a cascade of forced liquidations — a startling outage that users captured on social media and which the platform moved quickly to remediate.
What happened
- At 12:36 a.m. ET Monday, Paradex’s status page flagged an issue shortly after users began reporting that BTC had plunged to $0 on the exchange and that thousands of liquidations were occurring.
- Around 2:00 a.m. ET, Paradex said it had identified the root cause — a botched database maintenance — and began rolling back chain state to block 1604710, the last known correct snapshot prior to the migration.
- The team force-cancelled all remaining open orders while executing the rollback. By 5:16 a.m. ET the exchange posted that recovery efforts were ongoing and “we can confirm that all user funds are SAFU.”
User impact and market context
- The glitch was exchange-specific: it affected Paradex’s chain, block explorer, bridge and API — not Bitcoin’s broader market price.
- Traders reported a spike in liquidations tied to the abnormal price prints. Industry data show a highly volatile 24-hour session for the broader market: BTC fell from above $95,000 to $92,284 just after 7:00 p.m. ET Sunday, and was trading around $93,318 at the time of reporting — a 2% drop in 24 hours that trimmed its weekly gain to roughly 1.4%.
- CoinGlass data indicate more than $875 million in liquidations over the last 24 hours, with about $234 million attributed to Bitcoin trades — though it’s not yet clear how much of that was directly triggered by the Paradex glitch.
Protocol scale and status
- DeFiLlama lists Paradex perps with roughly $641 million in open interest and about $37 billion in volume over the past 30 days, underscoring the protocol’s market footprint.
- The platform’s status page later reported that all Paradex services were operational as recovery continued.
Why it matters
- Perpetuals and margin platforms are highly sensitive to price feeds, UI or state errors; a bad migration or oracle glitch can produce extreme, localized price prints and automatic liquidations that cascade rapidly.
- Even though the problem was isolated to Paradex, the incident highlights operational risk in decentralized derivative markets and the importance of robust maintenance procedures and rollback plans.
Paradex has not disclosed a final tally of liquidation losses tied specifically to the outage. The exchange says accounts will be restored to the pre-maintenance state (block 1604710) and promised further updates as the recovery completes.
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