Hyperliquid, a decentralized exchange operating on its own Layer 1 blockchain, experienced over 30 minutes of trading downtime on Tuesday due to an API server overload.
Key Takeaways:
Hyperliquid faced over 30 minutes of downtime due to an API overload, not a hack. The team has promised new safeguards to prevent similar incidents. The exchange recently hit record open interest and trading volumes, driven by the Pump.fun (PUMP) listing.The incident, which sparked concern among traders, was not the result of a hack or vulnerability, according to the platform.
Reports of delayed trade execution began surfacing at 14:10 UTC, with frustrated users posting in the official Discord channel as their orders failed to process.
Hyperliquid Confirms Outage After Status Page Lags Behind
Although Hyperliquid’s status page initially did not reflect any issues, a representative confirmed the outage was under investigation.
By 14:47 UTC, trading had resumed, and the platform issued a public update describing the event as a “major outage.”
“There was an issue with API servers between 14:10 and 14:47 UTC in which orders were delayed in being sent to the nodes,” Hyperliquid’s team wrote.
“This was due to a significant spike in traffic. There was no hack or exploit.”
The clarification was echoed on Discord, where staff acknowledged user complaints and explained that the trading halt had caused brief price divergences as traders were unable to close positions.
In response, the Hyperliquid team pledged to introduce additional safeguards and monitoring tools to its technical stack to detect and mitigate similar API server issues in the future.
Hyperliquid’s native token, HYPE, dipped 3.75% to roughly $43 during the downtime and has since stabilized near that level.
Last week, Hyperliquid reported a record $12.1 billion in open interest following the exchange’s early listing of Pump.fun (PUMP), which significantly boosted trading activity.
On July 15, the platform highlighted that PUMP pre-market futures open interest and 24-hour trading volume have reached nearly $400 million and $600 million, respectively.
Rising Interest in Perpetual Futures
As reported, Amsterdam-based crypto derivatives exchange D2X has secured €4.3 million in fresh funding from a lineup of heavyweight backers to expand its institutional crypto derivatives platform.
“With its MTF license and weekend-ready architecture, D2X addresses two major gaps in Europe: regulated venues and access to 24/7 crypto markets,” said Charlie Sandor, Investment Partner at CMT Digital.
Last week, Coinbase introduced CFTC-regulated nano Bitcoin and Ethereum perpetual futures, giving US retail traders access to up to 10x leverage within a compliant onshore framework.
Offered through Coinbase Financial Markets, the contracts come with low taker fees starting at 0.02% and replicate traditional perps, featuring five-year expirations and hourly funding rates.
Settled in USD, the new products trade 24/7 and aim to bring U.S. users back from offshore platforms.
Perpetual futures dominate global crypto derivatives trading, but American traders have long been pushed to riskier offshore venues due to regulatory hurdles.
Coinbase’s launch marks a shift, providing legal access to leverage while aligning with Commodity Futures Trading Commission (CFTC) standards.
The move is part of a broader trend as US exchanges, including Kraken, ramp up their regulated derivatives offerings.
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