The worth of Bitcoin dropped to $0 on perps decentralized alternate Paradex in a single day, in response to quite a few customers, after a database migration problem affected the Paradex blockchain, its block explorer, bridge, and API.
A difficulty was first flagged on the Paradex standing web page at 12:36 a.m, ET on Monday, shortly after social media posts flagged a cascade of liquidations as the value of Bitcoin plunged to $0 on the alternate.
Round 2:00 a.m. ET, the alternate recognized the problem and commenced instituting a repair that resulted in rolling again the state of Paradex Chain, a blockchain constructed utilizing the Starknet stack. Starknet is an Ethereum layer-2 scaling community.
🩸🚨Okay, after I posted the screenshot, I believed it was a UI bug.
Then I noticed on the pc that the value got here again after going to $0.
Now there are literally thousands of liquidations.
This does not look good for @paradex ☠️ https://t.co/m4YbnfHkgN pic.twitter.com/QbKd3U432s
— Sniper ₿ (@sniiperrB) January 19, 2026
“We’ve recognized the problem and will likely be rolling again chain state to dam 1604710,” the standing replace reads. “That is the time earlier than the DB upkeep and is the final recognized right state. All accounts will likely be restored to the state earlier than the DB upkeep. We’ll present extra updates as we proceed with rollback.”
Shortly thereafter, Paradex force-cancelled all remaining open orders, and round 5:00 a.m. ET it confirmed that every one person funds have been protected as its restoration course of was ongoing.
“Restoration efforts are ongoing. We are able to verify that every one person funds are SAFU,” a put up on the standing web page at 5:16 a.m. ET reads.
It’s nonetheless unclear how a lot the liquidations tallied as much as, however information from DeFiLlama signifies that the perps protocol has round $641 million in open curiosity. The protocol has facilitated round $37 billion in quantity during the last 30 days.
All Paradex providers at the moment are operational, in response to an replace on the standing web page.
The alternate’s worth glitch adopted a risky interval of buying and selling for BTC, which dropped from greater than $95,000 to $92,284 simply after 7:00 p.m. on Sunday. The two% drop within the final 24 hours has eaten into the highest crypto asset’s weekly acquire, which now stands at 1.4% with BTC not too long ago altering palms at $93,318.
The slide triggered a rising variety of liquidations, which have now prolonged to greater than $875 million during the last 24 hours—$234 million of which may be attributed to Bitcoin, in response to information from CoinGlass.
