Decentralized Exchange Experiences Major Disruption
Paradex, a decentralized exchange (DEX) operating on the Starknet network, experienced a significant service outage, leading to the cessation of most of its systems. The disruption occurred due to a data error that had a cascading effect on the platform's operations.
Bitcoin Price Plummets to Zero, Triggering Liquidations
Reports indicate that a data error on Paradex caused the Bitcoin (BTC) price to momentarily drop to zero. This drastic and erroneous price fluctuation triggered mass liquidations across the platform, affecting numerous user positions.
Team Acknowledges Issue and Reverts Chain
The Paradex team acknowledged the incident, attributing it to a database migration. They announced their intention to revert the chain to its state prior to the migration to rectify the error.
“We have identified the issue and will revert the chain status to block 1604710 (UTC 04:27:54).”
Impact on Open Orders and Starknet Token
It was stated that the buyback process initiated by the team would cover all open orders on the platform, leading to their compulsory cancellation. However, it was noted that take-profit and stop-loss (TPSL) orders were not included in this compulsory cancellation. While the exact number of users affected and the total value of liquidated funds remain unknown, the outage also had repercussions for Starknet. The network's native token, STRK, reportedly lost over 3% of its value in the wake of the data error.