29.07.2025 17:01
A significant API outage affecting the Hyperliquid perpetual futures decentralized exchange (DEX) left numerous traders unable to manage their positions, creating a period of market standstill. This disruption prevented traders from closing existing positions, adding margin, or canceling orders, effectively freezing their accounts.
The outage, reported between 2:20 PM and 2:47 PM UTC, coincided with unusually negative funding rates on Hyperliquid, fueling speculation about a potential coordinated attack or intentional disruption. Adding to the concern, this incident occurred while Hyperliquid held a record-breaking open interest exceeding $14.7 billion. The inability to liquidate open positions during this period meant all users were locked into their existing trades, awaiting resolution.
The impact extended beyond Hyperliquid itself. Lighter DEX, which relies on Hyperliquid's order books, also suffered from the API failure, highlighting the interconnectedness within the crypto ecosystem. User reports flooded in via various channels, detailing their inability to access their accounts across both desktop and mobile platforms. These reports, including frustrated social media posts, described error messages, complete account lockouts, and the failure of stop-loss orders – potentially resulting in significant financial losses for affected users. One user’s tweet, for example, vividly described their panic as they were completely unable to interact with their positions.
The unexpected nature of the outage, coupled with the substantial sum locked in open positions, has understandably generated anxiety within the community. Concerns have been raised about the possibility of a scenario mirroring the FTX collapse, where access limitations preceded a catastrophic exchange failure. While the reasons behind the outage are still under investigation, its ramifications for market stability and trust within the decentralized finance (DeFi) space are significant. The subsequent investigation and any subsequent official statement from Hyperliquid are eagerly awaited.
