Hyperliquid reimburses $2M to crypto traders after API outage

1 week ago

Hyperliquid’s accelerated effect whitethorn boost assurance successful decentralized trading platforms, which are gaining marketplace stock connected centralized exchanges.

Hyperliquid reimburses $2M to crypto traders aft API outage

Decentralized speech Hyperliquid has reimbursed astir $2 cardinal to users affected by a little outage past week, a determination that whitethorn fortify assurance successful decentralized trading platforms.

The Hyperliquid platform’s exertion programming interface (API) suffered an outage past Tuesday, which saw traders sidelined from bid execution for astir 37 minutes earlier resuming operations, its website shows.

On Monday, Hyperliquid issued refunds totaling $1.99 cardinal successful USDC (USDC) to affected users, onchain information from Hypurrscan shows.

Hyperliquid’s accelerated effect and $2 cardinal repayment pursuing the half-hour outage were praised by users.

“Over $1.5m has already been sent retired to users (can confirm),” said Hyperliquid trader aaalex successful a Monday X post. “Incredible considering they person nary ineligible obligation, nary declaration oregon SLA to bash this,” helium added.

Hyperliquid’s handling of the concern comes arsenic decentralized exchanges (DEXs) turn more competitory with centralized platforms, contempt caller setbacks. In March, the level suffered a $6.26 cardinal exploit involving the Jelly my Jelly (JELLY) memecoin owed to a vulnerability successful its liquidation parameters.

Hyperliquid has grown to go the seventh-largest derivatives speech successful the world, with implicit $10.6 cardinal of 24-hour unfastened interest, up from 12th spot since the opening of April, CoinGecko information shows.

Hyperliquid outage caused by postulation spike, not exploit

While the outage sparked archetypal concerns implicit a imaginable hack oregon exploit, Hyperliquid stated that the contented was caused by a “significant spike successful traffic” aft the level surpassed a $14.7 cardinal grounds precocious successful full unfastened involvement connected July 23.

“During the play from 14:10-14:47 UTC connected July 29, orders were delayed owed to API servers experiencing a important spike successful traffic,” Hyperliquid said successful a Monday Telegram announcement.

“The API returned mistake responses contempt transactions being sent to the mempool and aboriginal included successful blocks,” the announcement stated, adding that it initiated repayments to affected traders based connected 3 categories.

However, users who are owed implicit $10,000 request to implicit Know Your Customer (KYC) verification for the afloat refund. These users person already received $9,999 of their refunds, but volition request to implicit the verification process done a Discord summons by Aug. 18 to person the remaining funds.