Paradex maintenance issue resolution: $650,000 refunded to 200 traders

VCsSuckMyLiquidity · 2026-01-31T02:00:58+00:00

In mid-January, Paradex faced a technical incident during a database upgrade, causing data corruption and resulting in $650,000 in compensation for nearly 200 affected users. The platform quickly implemented recovery measures, ensuring user protection and transparency.

VCsSuckMyLiquidity

2026-01-31 02:00:58

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A technical incident occurred in mid-January, forcing Paradex to implement a comprehensive recovery solution and compensate nearly $650,000 USD to approximately 200 affected users. According to PANews, this issue stemmed from an intermittent error during the platform’s database upgrade process.

Error During Database Upgrade

A 30-minute maintenance outage caused a race condition in critical data processing operations. As a result, corrupted data was stored in the cloud system and synchronized to Paradex’s blockchain. This situation led to a loose data item in the form of market funding indicators being reset to zero, causing many accounts to record abnormal profits and losses.

Chain liquidation and rapid response measures

This incident triggered a series of automatic liquidations across multiple derivative trading pairs. Recognizing the severity, Paradex quickly cut off platform access, canceled all pending orders (except take-profit and stop-loss orders to protect users), and restored the blockchain to the snapshot taken immediately before the maintenance window.

Refund plan and system recovery

To compensate for the damages, Paradex announced a plan to refund the entire $650,000 USD to 200 traders affected by this technical incident. This measure reaffirms the platform’s commitment to user protection and transparency in handling emergency situations. Additionally, Paradex was temporarily unavailable due to the blockchain recovery process during the database maintenance phase, but the system was stabilized afterward.

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