Paradex Bug Triggers Liquidations, Prompting Refunds

Paradex, a decentralized exchange, experienced a technical incident during a planned database upgrade that corrupted funding data, leading to unintended liquidations across multiple markets. The platform responded by executing a chain rollback and initiating refunds totaling $650,000 to approximately 200 affected users. This incident highlights the operational risks inherent in DeFi platforms, particularly during system maintenance and upgrades.

While the bug and subsequent liquidations represent a short-term operational failure, Paradex's swift response—including transparency about the issue and prompt refunds—demonstrates a commitment to user protection and platform integrity. Such corrective actions can help maintain user trust in the rapidly evolving DeFi ecosystem, though they also underscore the need for robust testing protocols to prevent similar occurrences.

Read full article on CoinTelegraph