Hyperliquid Faces API Congestion Issues

Hyperliquid experienced another system issue early today, with users reporting “unexpected error sending order” messages. Unlike yesterday, the team clarified that the problem was due to API congestion, not an outage.

While the quick fix and lack of exploit have calmed most users, orders are still being processed with delays. Additionally, liquidity and volume remain down, leading to a 5% price dip post-incident.

Hyperliquid’s native token fell by 3.75% to $42.59. At the time of writing, the token continues its downward trend, trading around $42.10, marking a drop of more than 2.27% in the last 24 hours.

Hyperliquid’s Plans for Refunds

Hyperliquid has confirmed it will issue automated refunds to users affected by an API server issue that caused 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 encountered issues with trade execution, leading to price discrepancies as traders couldn’t close positions during the delay.

Hyperliquid’s status page initially showed no issues, but a later update confirmed a “major outage” caused by a spike in traffic. Many users were relieved to learn that it was not a hack or vulnerability attack.

A Significant Loss for a Hyperliquid User

James Wynn, a crypto trader, has made large bets on the Hyperliquid perpetual futures exchange despite incurring considerable losses.

In the last two weeks, Wynn invested over $1.2 million into Hyperliquid, losing nearly all his deposits through a series of highly leveraged trades that led to nine liquidations.

Using leverage, Wynn traded Bitcoin, Ethereum, Pepe, and Doge. When trades soured, the exchange automatically sold his collateral to cover losses. Ultimately, he lost over $22 million on one wallet since he began trading on the platform. On Tuesday, he ceased trading, closing a Pepe long for a loss and withdrawing about $33,000 to Binance.