Some users of the decentralized exchange (DEX) Hyperliquid experienced a glitch that blocked them from placing or closing orders.
(Source: Wu Blockchain on X)
A technical malfunction left some users unable to close positions, raising concerns about potential forced liquidations during volatile markets. The issue, caused by an API outage that paused all frontends and trading, has now been fully resolved, with all systems operational and trading restored.
The outage affected core trading features, including order placement, liquidity access, and arbitrage execution — essential tools for Hyperliquid traders. Experts noted that such glitches on DEX platforms can increase volatility.
One Reddit user, “Lukky,” wrote: “I’m panicking right now, I have a huge ETH long open worth $782. If this isn’t resolved soon, I might get liquidated. If I am liquidated, I want my money fully reimbursed. Where can I contact Jeff directly?”
Hyperliquid’s founder, Jeffrey “Jeff” Yan, has not commented publicly, but an official representative posted on Discord confirming the issue was under investigation and updates would follow promptly.
In the last 24 hours, Hyperliquid’s native token HYPE fell 3.6% from $45.27 to $43.30, with market cap down 4.12% to $14.45 billion (CoinMarketCap).
In April 2023, dYdX, another DEX specializing in perpetual futures and margin trading, experienced a similar outage that halted order placement and closing.
Will This Error Shatter HYPE’s New ATH Dream?
Just 12% below its all-time high of $49, HYPE faces a critical test of market confidence after the outage. On-chain data shows whales accumulating positions with conviction. Since April, spot order sizes have grown 300% as institutional capital replaces retail activity. Liquidity pools between $35–$45 create a technical springboard for either breakout or rejection.
While technical indicators remain cautiously optimistic, the incident has introduced uncertainty into HYPE’s push toward new highs.
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Hyperliquid’s quick recovery restored trading, but the event underscores the importance of platform reliability in maintaining trader trust. Strong whale accumulation and solid liquidity zones could still support upward momentum if stability holds.