Paradex, a leading decentralized exchange (DEX), experienced a catastrophic pricing glitch during recent trading hours involving its Bitcoin (BTC) perpetual futures market. The malfunction erroneously displayed the price of BTC derivatives at near $0.00, creating an instantaneous window for market exploitation.
The glitch, which lasted for several minutes, triggered a rapid cascade of events, allowing automated trading bots and opportunistic users to acquire contracts at effectively zero cost. More severely, the zero-price calculation resulted in the mass liquidation of numerous legitimate long positions across the platform, causing significant unintended losses for traders whose positions were deemed insolvent based on the faulty price feed.
Recognizing the critical failure of the price oracle, Paradex immediately halted trading on the affected BTC perpetual market. Following an emergency internal review, the platform’s administrators announced the decision to execute an emergency hard rollback. This measure aims to restore the state of the futures market, including all affected user balances and trades, to a snapshot taken just moments before the pricing anomaly occurred, thereby reversing the damaging liquidations.
Paradex management issued a formal apology for the failure, confirming that all efforts are focused on ensuring the integrity of user funds. The incident highlights ongoing challenges in maintaining robust, decentralized pricing mechanisms in high-stakes derivatives environments, and the exchange stated it will implement enhanced oracle monitoring and security protocols moving forward.
Source: Paradex’s ‘free bitcoin’ pricing glitch triggers mass liquidations, forces rollback
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