Briefly
- A database migration situation on perps decentralized trade Paradex led to the worth of Bitcoin displaying as $0, forcing a liquidation cascade.
- The problem required a series rollback to revert to its final regular state earlier than the glitch took impact.
- Service has since been restored and person funds are protected, based on the trade's standing web page.
The value of Bitcoin dropped to $0 on perps decentralized trade Paradex in a single day, based on quite a few customers, after a database migration situation 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 worth of Bitcoin plunged to $0 on the trade.
Round 2:00 a.m. ET, the trade recognized the difficulty and started 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, once I posted the screenshot, I assumed it was a UI bug.
Then I noticed on the pc that the worth got here again after going to $0.
Now there are literally thousands of liquidations.
This doesn't look good for @paradex ☠️ https://t.co/m4YbnfHkgN pic.twitter.com/QbKd3U432s
— Sniper ₿ (@sniiperrB) January 19, 2026
“We have now recognized the difficulty and can 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 can be restored to the state earlier than the DB upkeep. We are going to 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 affirm that every one person funds are SAFU,” a submit 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 companies are actually operational, based on an replace on the standing web page.
The trade’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 lately 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 might be attributed to Bitcoin, based on information from CoinGlass.
