Paradex Outage Triggers Chain Rollback to Block 1,604,710 — Trading Restored, Gigavault Withdrawals Paused
Paradex, a decentralized perpetual futures exchange, suffered a platform-wide outage on January 19 that disrupted its UI, APIs, blockchain modules, bridge, block explorer, RPC proxy and cloud services. Engineers identified the root cause and executed a chain rollback to block 1,604,710 to restore a consistent on-chain state. As part of remediation, the team force-cancelled all open orders except take-profit and stop-loss (TPSL) orders. The exchange confirmed all user funds remained secure. By 13:24 UTC the platform resumed operations and re-enabled vault withdrawals; however, deposits and withdrawals via Gigavault remained paused for up to 24 hours. Paradex warned users about impersonator scams and reiterated it will never request private keys. The incident highlights operational risk for DEXes that rely on modular cloud and bridge components and underscores the importance of verified support channels. Traders should note potential short-term liquidity and funding-rate volatility in Paradex markets while Gigavault remains paused. Relevant keywords: Paradex outage, chain rollback, decentralized perpetual futures, TPSL orders, Gigavault pause, user funds secure.
Neutral
The incident has a limited direct effect on token prices and is primarily an operational risk for Paradex users. The confirmed safety of user funds and the return of core services by 13:24 UTC reduce immediate sell pressure. However, forced cancellations of open orders and a temporary pause on Gigavault deposits/withdrawals can create short-term liquidity tightness and localized volatility in funding rates and spreads on Paradex markets. Traders may see increased slippage and wider bid-ask spreads for leveraged positions on the platform until Gigavault services fully resume and orderbooks rebuild. In the medium to long term, the event is unlikely to materially change market sentiment toward underlying cryptocurrencies unless recurring outages or security issues emerge. Overall, expect short-term operational disruption on Paradex (bearish for short-term liquidity on that platform) but neutral price impact on the broader token markets given no reported loss of funds.