The Hyperliquid platform has encountered technical problems once again, leading to users being unable to place orders. The team provided an explanation of the current situation.
Reasons for Hyperliquid's Issues
Today, users reported "unexpected error sending order" messages on Hyperliquid. The team clarified that the problem was due to API congestion, not a full outage. Despite a quick fix and no serious vulnerabilities, orders are still being processed with delays. Liquidity and trading volume have decreased, and the token price fell by 5% following the incident.
Automated Refunds for Users
Hyperliquid confirmed that it will issue automated refunds to users affected by the API server problems that led to over 30 minutes of trading downtime on Tuesday. "An update will be shared in the coming days once an appropriate refund methodology has been determined for affected users," said the Hyperliquid team on their official Telegram channel.
Trader Losses on Hyperliquid
Trader James Wynn placed over $1.2 million into Hyperliquid but lost nearly all his deposits due to a series of risky leveraged trades. Wynn faced liquidation nine times, losing over $22 million in total on one wallet. On Tuesday, he closed a Pepe long for a loss and withdrew about $33,000 to Binance.
The current situation on Hyperliquid highlights the risks associated with trading on highly volatile platforms and the use of leverage. Users continue to closely monitor developments.
