Traders Repaid $2 Million After Hyperliquid API Goes Down

Crypto News Exchanges

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 04, 2025

Key Takeaways

Hyperliquid refunded $1.99 million to users affected by a 37-minute service outage on July 29;
The issue was caused by a spike in traffic, not a hack, following record open interest;
Users owed over $10,000 must complete KYC on Discord by August 18 to receive full refunds.

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Traders Repaid $2 Million After Hyperliquid API Goes Down

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Hyperliquid, a decentralized trading platform, has refunded almost $2 million to users who were affected by a short service interruption.

On July 29, a sudden increase in platform traffic caused its interface to stop processing orders between 02:10 PM and 02:47 PM UTC.

During this time, trades could not be submitted properly through the API, even though transactions still reached the blockchain and were later confirmed.

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Some traders initially feared the issue might have been caused by a security breach. However, Hyperliquid later explained that the problem was due to unusually high traffic levels following a record $14.7 billion in open interest just days earlier.

According to the platform, while transactions reached the mempool and were added to blocks, the system responded with error messages that made it seem like orders had failed.

Hyperliquid issued refunds to users who were unable to trade during the downtime. On-chain data from Hypurrscan shows that $1.99 million in USDC USDC $1.00 was distributed on August 4. The refunds were organized into three categories based on the amount each user was owed.

Users with losses under $10,000 received their full refunds right away. Those who were due more than that amount received $9,999 upfront. To receive the remaining balance, these users must complete a Know Your Customer (KYC) process through Discord before August 18.

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