Paradex Executes Rollback After BTC Perps Collapse and Mass Liquidations
Traders saw a sudden wave of liquidations across BTC, ETH and SOL markets after BTC perpetual contract quotes briefly fell to zero, triggering forced closes and extreme price moves. The cascade forced Paradex, a major decentralized exchange, to execute a blockchain rollback to restore balances and prevent user losses — an uncommon intervention for a DEX that drew immediate attention from the wider crypto community.
Paradex says the rollback was necessary to safeguard funds, but the episode raises questions about decentralization, oracle and risk‑management design in perp markets. Market makers and centralized venues may tighten liquidity and margin requirements in the short term, while users should monitor official Paradex channels, review positions, and consider withdrawing assets until investigations conclude. Regulators and counterparties will likely probe the technical cause and governance decisions behind the rollback.