Paradex’s ‘free bitcoin’ pricing glitch triggers mass liquidations, forces rollback

The Starknet-based decentralized exchange Paradex experienced a severe technical error where Bitcoin (BTC) was briefly priced at $0, leading to widespread liquidations across thousands of user positions. Paradex confirmed the issue, attributing it to a glitch, and announced a plan to roll back the blockchain state to a block recorded just before scheduled maintenance began to restore the exchange to its last known correct state. While the project assured users that all funds were safe, it did not disclose the number of affected traders or the value liquidated. This decision to rewrite blockchain history is considered an extreme measure, contrasting with typical responses like pausing activity, and raises questions about technical control, similar to recent debates seen in other networks like Berachain and Flow regarding emergency responses.

(Source：The Block)