Bitcoin Hits $0 on Paradex After Starknet Glitch — Mass Liquidations Force Rollback
Bitcoin briefly appeared to commerce at zero on Paradex early Sunday after a technical failure throughout scheduled upkeep triggered mass liquidations throughout the decentralized perpetual futures change, forcing the group to announce a uncommon chain rollback to reverse the harm.
The incident unfolded shortly after Paradex carried out database upkeep at round 4:30 a.m. London time.
Within minutes, merchants started reporting that costs on a number of perpetual markets, together with Bitcoin, Ethereum, and Solana, had collapsed to near-zero ranges.
Okay, once I posted the screenshot, I assumed it was a UI bug.
Then I noticed on the pc that the value got here again after going to $0.
Now there are millions of liquidations.
This would not look good for @paradex
https://t.co/m4YbnfHkgN pic.twitter.com/QbKd3U432s
— Sniper ₿ (@sniiperrB) January 19, 2026
Screenshots and movies shared on social media showed a flood of liquidation alerts hitting the platform virtually concurrently, suggesting that the change’s pricing mechanism or oracle feed had malfunctioned in the course of the replace.
Timestamped alerts point out probably the most intense exercise occurred round 05:02 UTC on January 19, 2026.
Inside Paradex’s Chain Rollback After Mass Liquidations
During that transient window, lengthy positions throughout a number of markets have been liquidated at costs displayed as $0.00.
Bitcoin perpetual contracts noticed quite a few lengthy liquidations at zero, whereas some quick positions have been closed at regular market costs close to $92,600, pointing to a problem that disproportionately affected one aspect of the order guide.
The sudden repricing mechanically pressured leveraged positions to shut to stop damaging balances, amplifying the harm in a matter of seconds.
Roughly three hours after the occasion, Paradex director of engineering Clement Ho addressed customers on Telegram, confirming that the group had recognized the difficulty and would roll again the chain state to dam 1,604,710, timestamped at 04:27:54 UTC.
Ho famous that this block represented the final recognized appropriate state earlier than the upkeep started. Paradex later echoed the message on its web site, stating that restoration efforts have been underway and that every one person funds remained protected.
A rollback on this context means reverting the blockchain and related system state to a degree earlier than the defective transactions occurred, successfully canceling all trades, deposits, and liquidations that befell after that block.
While improperly liquidated customers might even see their positions restored, any earnings earned after the rollback level would even be erased.
Such actions are broadly thought-about a final resort in decentralized methods as a result of they undermine the precept of immutability that blockchains are designed to uphold.
Paradex Restores Services After Outage, Warns Users of Impersonation Scams
Paradex operates on Starknet as a decentralized perpetual futures change and has grown into a large venue for on-chain derivatives buying and selling.
Data from DefiLlama reveals the platform processed almost $1.6 billion in buying and selling quantity the day earlier than the incident and holds round $225 million in person deposits.
CoinGecko reported roughly $652 million in open curiosity over the previous 24 hours, and over a 30-day interval, Paradex ranks among the many high ten decentralized perps exchanges, with greater than $37 billion in reported buying and selling quantity.
Following the liquidations, Paradex reported a platform-wide service outage affecting its buying and selling interface, APIs, blockchain elements, bridge, and block explorer.
As a part of its restoration course of, the change stated it will force-cancel all open orders besides take-profit and stop-loss orders.
Later updates confirmed that the platform and vault withdrawals had been re-enabled, although deposits and withdrawals for Gigavault would stay paused for as much as 24 hours.
The group additionally issued warnings about pretend help accounts impersonating Paradex workers in the course of the outage, urging customers to rely solely on official channels.
The incident has renewed scrutiny round technical danger in on-chain derivatives markets, which have confronted a sequence of disruptions in latest months.
Aster, a high perps change by quantity, has suffered repeated losses after being focused by refined buying and selling methods, together with a high-profile incident in September when following an abnormal price spike in its XPL perpetual contract.
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