Hyperliquid Compensates Traders with Nearly $2 Million After API Outage

On August 4, the decentralized exchange Hyperliquid began disbursing approximately $2 million in compensation to its clients following a failure in its API (Application Programming Interface). This information has been confirmed by data from Hypurrscan.

On July 30, traders on the DEX reported issues with order execution. Initially, users speculated that the problems were caused by a hacking incident. However, the Hyperliquid team clarified that the disruption was due to overwhelming traffic on their API servers, which coincided with an open position total of $14.7 billion on the exchange.

«The API interface was generating errors, but transactions were being correctly placed in the mempool and subsequently confirmed by being included in the blockchain,» representatives of the DEX remarked.

On July 31, Hyperliquid promised to repay the losses incurred. The compensation was divided into three different categories.

Users appreciated Hyperliquid’s prompt response. A trader using the handle aaalex.hl verified that the exchange had already transferred over $1.5 million to clients.

«It’s impressive, considering they had no legal obligations, contracts, or SLAs (Service Level Agreements) mandating such actions,» he commented.

Some noted Hyperliquid’s «exceptional commitment» to its users.

In light of this news, the platform’s native token, HYPE, saw a 2.8% increase in value, according to CoinGecko. At the time of writing, the cryptocurrency is trading at $38.6.

It is worth mentioning that on July 30, the Polygon network ceased to process transactions and generate new blocks.