Decentralized exchange Hyperliquid refunded nearly $2 million to its users following a recent API outage that temporarily halted trading.
Reasons for the API Outage
The outage occurred on July 29 and lasted approximately 37 minutes, during which traders were unable to execute orders due to a surge in platform traffic. Hyperliquid attributed the disruption to API server overload, which occurred after the exchange reached a record $14.7 billion in open interest.
User Refunds
According to on-chain data from Hypurrscan, Hyperliquid issued $1.99 million in USDC refunds on Monday. Users praised the platform for moving quickly to compensate losses despite having no legal or contractual obligation to do so. A Hyperliquid trader noted, "Over $1.5 million has already been sent out to users (can confirm)."
Hyperliquid's Growth Post-Exploit
The outage comes months after Hyperliquid was hit by a $6.26 million exploit tied to a vulnerability involving the JELLY memecoin. Despite this incident, the exchange has seen rapid growth and now ranks as the seventh-largest derivatives exchange by open interest, with $10.6 billion in daily activity.
The recent outage at Hyperliquid has been a significant event for the exchange, but its quick response and user refunds showcased its commitment to maintaining trust among traders.
