Paradex Bitcoin Price Glitch Triggers Zero-Value Liquidations

A technical failure on Paradex, a decentralized derivatives exchange built on Starknet, briefly displayed Bitcoin as being priced at zero.

The erroneous data, caused by a database migration issue, was rapidly picked up by algorithmic systems across the platform. As leveraged positions were liquidated en masse, Paradex suspended trading and initiated a rollback to contain the damage.

Although services were later restored, the incident has reignited debate over the operational resilience and governance practices of decentralized finance (DeFi) infrastructure.

• Paradex reported a database migration error that caused Bitcoin’s price to hit $0.
• The derivatives exchange resumed trading after an emergency rollback.
• Users reported widespread liquidations caused by the zero-price feed.
• Starknet’s STRK token fell roughly 5% following the incident, according to CoinMarketCap.
• Bitcoin traded below $93,000 globally at the time of the disruption.

The disruption began during a routine database migration on Paradex. During the process, Bitcoin was incorrectly set to zero in the exchange’s internal systems.

That false price was immediately picked up by automated trading programs. Consequently, leveraged positions were automatically closed without human intervention, amplifying losses across the platform.

Once the anomaly was identified, Paradex limited further damage by halting all trading activity.

Following the suspension, Paradex initiated a rollback to restore accurate records and system integrity. Most open orders were canceled as part of the recovery process, while take-profit and stop-loss instructions were left active to maintain basic risk controls.

Trading access was restored around 12:10 UTC on January 19, according to the exchange. Paradex assured users that all funds remained secure, noting that the recovery process was technically complex and ongoing.

The incident also weighed on sentiment around Starknet more broadly. Its native STRK token declined about 5% shortly after the disruption, according to CoinMarketCap.

Bitcoin prices on other venues remained relatively stable. As of press time, Bitcoin is trading at $91,076, down 1.8% over the past 24 hours.

Analysts at CryptoQuant attributed recent selling pressure to U.S. investors outside of ETF products, noting that U.S. Bitcoin ETFs were not trading during the incident.

Meanwhile, Bitfinex analysts pointed to gradual improvements in market structure but warned that selling pressure persists amid macroeconomic and geopolitical uncertainty.

Reactions on X were largely negative following the rollback. Several users questioned whether a decentralized exchange should reverse on-chain activity at all.

Others raised concerns about Starknet’s maturity as a layer-2 network. While some acknowledged Paradex’s timely communication, many said the incident had damaged confidence in both the platform and the broader ecosystem.