Paradex Incident Investigation Report: Abnormal Liquidation Caused by Database Upgrade, $650,000 Already Refunded

Foresight News reported that Paradex has released an incident investigation report for January 19. During a database upgrade and maintenance on January 19, a race condition occurred when the service was restarted, resulting in data corruption that was published to the Paradex Chain. This triggered a reset of funding rate indices and abnormal liquidations in some markets. The official response was to roll back the chain state to a snapshot taken before the maintenance and to cancel all open orders except for take-profit and stop-loss (TP/SL) orders.

Paradex completed an audit of affected accounts within 24 hours and refunded a total of $650,000 from the Liquidator Vault to 200 accounts. This incident marks the first time a rollback operation has been executed on the Paradex Chain. Enhanced service restart procedures, additional data validation safeguards, and price range protection measures during post-only periods have now been implemented. All data inconsistency issues on portfolio and Vault pages are expected to be resolved by January 26.