On July 29, 2025, Hyperliquid experienced a brief API outage due to an unexpected traffic surge, leading to automated refunds for affected users.
Causes of the API Incident
The 27-minute API outage resulted in a 5% drop in the value of the HYPE token. The main cause was the surge in traffic, highlighting the vulnerabilities in decentralized finance (DeFi) during frontend failures. However, backend services remained operational.
Automated Refunds Plan
Hyperliquid announced plans for automated refunds to compensate users affected by the API outage. All affected accounts will be identified automatically, and users will not need to file claims for refunds. "As part of its response, Hyperliquid will automatically identify affected accounts and issue refunds without requiring users to file claims..." — said the Hyperliquid team.
Recovery of the HYPE Token
Despite the temporary dip, the market showed resilience, with the HYPE token partially recovering. Successful execution of the automated refunds will be crucial for restoring user trust. "Hyperliquid's API outage on July 30, 2025, was caused by a traffic surge, not a hack..." — stated official representatives of Hyperliquid.
The Hyperliquid API outage emphasizes the need for improved stability and transparency in decentralized financial platforms. Automated refund measures may play a key role in strengthening user trust on platforms amid increasing market volatility.
