Bitcoin Price Crashes to Zero on Paradex Exchange as Glitch Fuels Mass Liquidations
A database migration issue on Paradex, a decentralized perps exchange built on Starknet, caused Bitcoin’s price to drop to $0 on the platform, triggering thousands of forced liquidations. The problem, first flagged after midnight ET on Monday, affected the Paradex blockchain, explorer, bridge, and API. By 2:00 a.m. ET, Paradex began fixing the issue, choosing to roll back its blockchain state to just before the database maintenance. All open orders were force-cancelled, and by 5:16 a.m. ET, Paradex confirmed that user funds were safe and recovery was ongoing. Paradex has about $641 million in open interest and processed roughly $37 billion in trades over the past month. The exact scale of liquidations is unclear, but total liquidations for all assets exceeded $875 million in 24 hours, with $234 million from Bitcoin alone. As of the latest updates, all Paradex services are operational, and user accounts have been restored.
