Paradex’s Bitcoin Price Dropped to Zero! 🚨 Blockchain Disaster! 🌪️

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Key Highlights

  • Paradex, that paragon of decentralized perfections, found itself in a quandary as its chain state was rolled back, reducing Bitcoin’s price to a ghostly $0.
  • The exchange, in a fit of panic, donned cancel-only and post-only modes, like a timid mouse fleeing a cat.
  • The incident, a tempest of technical hubris, reignited debates about rollbacks and the fragile dance of appchain-based DEXs.

Paradex, that sylph of decentralized perpetuals, built on Starknet’s fragile parchment, restored trading with the grace of a phoenix after a database migration error, that most insidious of digital specters, briefly priced Bitcoin at zero-a spectral mirage.

The problem, a rogue algorithm, emerged during routine database maintenance, spiraling into chaos as positions were erased by prices that never should have existed. Within hours, the team, in a moment of desperation, executed a full chain rollback, an act as controversial as it was necessary, resetting the chain to its last clean state, a veritable phoenix rising from the ashes of digital chaos.

A rare rollback in decentralized trading

In a Discord update, Paradex’s engineering leadership, those modern-day alchemists, confirmed the rollback to block 1,604,710, a timestamped relic before the maintenance window. The rollback, a surgical strike, restored all accounts to their pre-maintenance glory.

🚨BREAKING: @Starknet based perp DEX @paradex announces a chain rollback to block 1,604,710 after a database migration error briefly sent Bitcoin’s price to zero, triggering mass liquidations.

– SolanaFloor (@SolanaFloor) January 19, 2026

Rollbacks, that most dreaded of blockchain heresies, are generally avoided like the plague. Most protocols prefer pausing activity or applying targeted fixes. Paradex’s decision, a bold stroke, immediately drew attention across the DeFi cosmos.

“DO NOT USE@paradex if you don’t want to liquidate your btc on ‘$0’,” Raki wrote on X, as screenshots of zero-priced Bitcoin trades circulated like wildfire, a digital plague.

Gradual recovery under restricted trading

Following the rollback, Paradex, that meticulous choreographer of chaos, implemented a staged recovery:

  • Cancel-only mode, where users could only close positions, like a funeral director bidding farewell to their assets.
  • Post-only mode, allowing new orders without immediate execution, a dance of patience.
  • Full trading, restored once system integrity was confirmed, a triumphant return to the stage.

By 09:15 BRT, the platform, that resilient phoenix, confirmed Paradex was fully operational again, a testament to human (and algorithmic) tenacity.

Voyager’s block feed, that ever-ticking metronome, showed transactions ticking through every few seconds again, a practical signal that Starknet had returned to normal, a rebirth after the storm.

Starknet under scrutiny

The incident, a tempest of technical hubris, occurred just two weeks after a separate Starknet outage, adding pressure on the network as on-chain activity continues to rise, like a feverish heartbeat.

Even so, the ecosystem, that resilient garden, keeps growing. Stablecoin supply on Starknet, that ever-expanding river, has pushed past $200 million, and DeFi trading remains active, suggesting adoption is moving faster than the underlying infrastructure, a race against time.

Starknet’s native token, STRK, hovered around $0.081, with volatility spiking after the Paradex incident, according to data from CoinMarketCap, a rollercoaster of uncertainty.

A test of trust in on-chain derivatives

Paradex, that appchain on Starknet, designed for low-latency, non-custodial derivatives trading, operates as a paragon of innovation. The platform, incubated by Paradigm (the liquidity network), previously raised $35 million from investors, a chorus of financial titans.

While the exchange’s swift communication and rollback prevented permanent losses, the incident has renewed debates over how decentralized exchanges should respond to extreme technical failures, a conundrum as old as the hills. Where lies the line between decentralization and operator control? A question as elusive as the price of Bitcoin itself.

For traders, the takeaway was clear: while on-chain derivatives offer transparency and speed, infrastructure risk remains very real, especially during moments of rapid growth-a reminder that even the grandest castles can crumble under the weight of a single error.

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2026-01-19 21:20