Hyperliquid Refunds $2M After 37-Minute API Outage

On July 29, decentralized exchange Hyperliquid suffered a 37-minute API outage after its open interest surged to a record $14.7 billion, halting order processing though transactions still reached the blockchain. To restore user trust, Hyperliquid refunded $1.99 million in USDC on August 4, issuing full refunds for losses under $10,000 and an initial $9,999 payout for larger claims, with KYC required by August 18 to claim the balance. The platform clarified the outage resulted from traffic overload rather than an attack. This swift response, following a $6.26 million exploit in March, won community praise and reinforced Hyperliquid’s reliability. Hyperliquid now ranks as the world’s seventh-largest derivatives exchange by open interest at $10.6 billion.