Paradex Refunds $650K After Glitch Causes Trader Losses

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Paradex Pays Back $650,000 After Maintenance Glitch Hits Traders

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 23, 2026

Key Takeaways

Paradex refunded $650,000 to about 200 traders after a software issue during maintenance caused unintended liquidations;
The team said the fault came from a “race condition” in a database upgrade, not from any hack or security breach;
Paradex carried out its first-ever chain rollback and added new safety checks to prevent similar errors in the future.

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Paradex Pays Back $650,000 After Maintenance Glitch Hits Traders

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Paradex has reimbursed around 200 traders a total of $650,000 after a technical issue during system maintenance led to unexpected liquidations.

The team said the event was caused by a software error, not a hack or security problem.

In a post on X, Paradex explained that the incident happened on January 19 during a scheduled 30-minute database upgrade. A “race condition” occurred during the process.

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When this happened, several markets were affected, and traders saw positions closed by mistake.

Once the problem was found, Paradex shut down the platform to prevent further damage. All open orders were canceled, except for take-profit and stop-loss orders, and the network was restored to a snapshot created before maintenance began.

Paradex runs as an on-chain derivatives exchange, which allows users to trade leveraged perpetual contracts without giving up control of their funds to a centralized platform. Because all trading activity occurs on-chain, a rollback was needed to correct the network’s recorded state.

This was the first time Paradex had to perform a chain rollback. The team described it as an “undesired but necessary action” to protect users and restore normal operations.

After the event, Paradex improved service restart procedures, added additional data checks, enhanced handling of full maintenance windows, and implemented price protection rules during post-only trading phases.

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