The worth of Bitcoin dropped to $0 on perps decentralized trade Paradex in a single day, based on quite a few customers, after a database migration concern affected the Paradex blockchain, its block explorer, bridge, and API.
A problem 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 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, once I posted the screenshot, I believed it was a UI bug.
Then I noticed on the pc that the worth got here again after going to $0.
Now there are millions 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 might 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 identified right state. All accounts might 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 consumer funds had been protected as its restoration course of was ongoing.
“Restoration efforts are ongoing. We are able to affirm that every one consumer funds are SAFU,” a publish 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 knowledge from DeFiLlama signifies that the perps protocol has round $641 million in open curiosity. The protocol has facilitated round $37 billion in quantity over the past 30 days.
All Paradex providers at the moment are operational, based on an replace on the standing web page.
The trade’s value glitch adopted a unstable 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 achieve, which now stands at 1.4% with BTC not too long ago altering fingers at $93,318.
The slide triggered a rising variety of liquidations, which have now prolonged to greater than $875 million over the past 24 hours—$234 million of which will be attributed to Bitcoin, based on knowledge from CoinGlass.
