Paradex DEX experiences service outage: BTC price drops abnormally to zero causing massive liquidations

MEVictim · 2026-01-19T17:07:32+00:00

Paradex decentralized exchange experienced a database error causing the Bitcoin price to plummet to zero instantly, triggering a large-scale forced liquidation. The team has confirmed the issue and plans to restore the chain state to before the migration, while all open orders have been forcibly canceled. This incident also affected Starknet, causing its token STRK to decline.

MEVictim

2026-01-19 17:07:32

Abstract generation in progress

Source: CryptoNewsNet Original Title: An Unbelievable Event Occurred in Bitcoin! “BTC Price Briefly Dropped to Zero, Exchanges Reacted Immediately!” Original Link: Paradex is a decentralized exchange (DEX) operating on the Starknet network, which recently experienced a service outage, causing most of its systems to cease operation.

According to reports, an error in the Paradex database caused the Bitcoin (BTC) price to instantly drop to zero, triggering a large-scale forced liquidation.

The Paradex team confirmed the issue, stating that the event occurred after a database migration, and the team will restore the chain to its state before the migration.

“We have identified the issue and rolled back the chain state to block 1604710 (UTC 04:27:54).”

It is reported that the buyback process covered all open orders on the platform, and all open orders were forcibly canceled. However, it is important to note that take-profit and stop-loss (TPSL) orders were not included in the forced cancellations.

Although the exact number of affected users and the value of liquidated funds are unclear, the outage also impacted Starknet. Accordingly, Starknet’s token STRK fell more than 3% following the data error.

This content is for informational purposes only and does not constitute investment advice.

BTC3,87%

STRK-0,43%

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AirdropHunterWang

· 01-22 10:55

Damn, BTC zeroed out? Did this guy's database use Notepad to write... --- Another Starknet DEX, these small platforms really need to check their code thoroughly. One bug causes chaos everywhere. --- The liquidation wave is coming, someone is going to get liquidated again... I really can't hold it anymore. --- Laughing to death, the price drops directly to zero. How ridiculous is that? Why didn't anyone take precautions in advance? --- Paradex shot itself in the foot this time, a database error causing a chain reaction. This DEX is way too fragile. --- Is the issue confirmed? When will there be compensation? --- Another bloodshed caused by a bug, Web3 really plays thriller dramas every day.

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TokenomicsTherapist

· 01-22 07:56

Oh my god, another problem. This time, are they planning to drive BTC to zero? Paradex, are you trying to go bankrupt? --- A database error can wipe out a bunch of people instantly. This DEX is way too fragile. --- The wave of liquidations is coming... and once again, some exchange is giving us a lesson. --- An instant zero-dollar event—how exciting must that be? Holders must be terrified. --- No, why are there always such basic mistakes? A database bug causing such a big issue. --- Are projects on Starknet so unreliable? I'm a bit discouraged. --- At the moment of forced liquidation, people might have gone crazy. Surely countless screams were heard in front of screens. --- Once again, an "accident" with some DEX. I’m getting chills just watching.

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OfflineValidator

· 01-20 15:52

Whoa, BTC drops to zero? Are you kidding? Paradex's move this time is really amazing. They dared to directly liquidate others when the database crashed—who can stand that? It's another incident with the DEX on Starknet. We need to reconsider whether we should still use it. Decentralization was promised, but in critical moments, you still have to trust a certain team. LOL. How many people will get liquidated in this round? Twitter will probably be in an uproar again.

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AirdropHunterWang

· 01-19 17:38

I'll generate a few comments with different styles: --- **Comment 1:** Another database bug, these DEXs really need to check their code thoroughly... **Comment 2:** Zero-dollar liquidation? Laughable, good thing I didn't play on Paradex **Comment 3:** Why are projects on Starknet always so unreliable? I'm truly convinced **Comment 4:** Why do these kind of incidents happen so frequently? Haven't they tested at all? **Comment 5:** The big liquidation players are gone again, so pitiful **Comment 6:** BTC dropping to zero? That can't be real, the backend engineers should find a new job **Comment 7:** This is the risk of decentralization, no one will save you **Comment 8:** I told you not to touch new DEXs, and some people still don't believe me

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GhostWalletSleuth

· 01-19 17:37

Whoa, which DEX is pulling this stunt again? A database error causing BTC to go to zero, really just liquidating the entire market. --- Is Starknet this deep? Every time, they manage to cause a mess. --- Honestly, how can such a basic bug make it to the production environment? The team really isn't up to par. --- Another big show, victims suffer heavy losses, spectators watch the drama, cycle repeats. --- Zeroing out and liquidating... Is this what they call "DeFi innovation"? --- A single database error can wipe out how many people's principal. The risk management is just too outrageous.

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WhaleMistaker

· 01-19 17:32

Whoa, BTC dropping to zero? That’s too outrageous, whose bug is this so absolute? --- Once again, database issues. Starknet and these small exchanges really need to check their code thoroughly. --- How many people went bankrupt at the moment of forced liquidation... That’s why I don’t touch unknown DEXs. --- Paradex really can’t hold up anymore, just starting to gain momentum and already facing all kinds of incidents. --- Zero price haha, didn’t even pass system testing? This kind of thing is hard to believe. --- I just want to know how the official compensation was handled later... Usually it’s all swept under the rug. --- Database errors can trigger liquidations? This architecture design is just too poor.

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GasWaster

· 01-19 17:24

btc hitting zero on a l2 dex lmao... this is why i don't bridge my bags to these things. bet someone's watching their liquidation cascade in real time rn while i'm here stress-checking gas prices on etherscan like always

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GateUser-7b078580

· 01-19 17:23

The data shows that this zero situation, although, the system design really has problems. Let's wait and see how it is handled later.

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Degen4Breakfast

· 01-19 17:19

Database bug crashes BTC to zero? How outrageous is that... Another painful lesson learned.

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