Hyperliquid experienced another system issue early today. Users have reported “unexpected error sending order” messages. Unlike yesterday, the team has explained that the problem was due to API congestion, not an outage.
The quick fix and lack of exploit have calmed most users but orders are still being processed with delays. In addition, liquidity and volume are still down, and the price dipped 5% post yesterday’s incident.
Hyperliquid’s native token fell by 3.75% to $42.59. At the time of writing, the token continues its downward trend, trading at around $42.10, a drop of more than 2.27% in the last 24 hours.
Hyperliquid plan to pay refunds
Hyperliquid has confirmed it will issue automated refunds to users affected by an API server issue 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 users impacted by this particular issue,” the Hyperliquid team wrote on its official Telegram channel on Wednesday. “Refunds will be determined in an automated fashion; impacted users do not need to open a ticket at this time.”
As reported by Cryptopolitan, from 14:10 UTC on Tuesday, several customers started experiencing problems with trade execution. This produced price differences because traders couldn’t close positions during the delay.
Hyperliquid’s status page didn’t show the problem at first, but a later update verified the “major outage” and said that the cause was a spike in traffic. This was good news to many users who thought that it was a hack or a vulnerability attack.
Hyperliquid user loses millions on the platform
James Wynn, a crypto trader, has placed large bets on the Hyperliquid perpetual futures exchange, even though he is losing more and more.
In the last two weeks, Wynn put more than $1.2 million into Hyperliquid. He lost practically all of his deposits in a series of extremely leveraged trades, and he got liquidated nine times in the process.
He bet 10 times what he put in, trading Bitcoin, Ethereum, Pepe, and Doge. A trader who uses leverage borrows money to make a bigger stake than the amount they put into the deal at first. If the trade goes bad, the exchange will automatically sell the trader’s collateral to offset the loss of the leveraged position.
Wynn’s liquidations came after the trader made risky bets that cost him tens of millions of dollars. In total, he has lost over $22 million on one wallet since he started trading on the site. On Tuesday, Wynn finally stopped trading, closing a Pepe long for a loss and withdrawing about $33,000 to Binance.
