Hyperliquid Automates Refunds After API Outage Costs Users 3.75%

Hyperliquid, a decentralized exchange operating on its own Layer 1 blockchain, has announced plans to issue automated refunds to users affected by a recent API server outage that disrupted trading for over 30 minutes. The incident occurred early this month, with users reporting difficulties in executing trades and managing positions due to API-related congestion. The platform clarified in a Telegram post that the outage was caused by a sudden spike in traffic, not a security breach or technical vulnerability [4].

During the disruption, which spanned from 14:10 to 14:47 UTC, users experienced delays in order execution and price discrepancies, leading to confusion and potential financial losses. Hyperliquid emphasized that its core blockchain operations, including consensus and block production, remained unaffected, with transactions eventually confirming onchain [1]. Despite this, the API system generated error messages, creating further uncertainty for traders [4].

In response, the platform stated that refunds will be processed automatically and that impacted users are not required to file tickets or initiate claims. The exact methodology for determining compensation has yet to be finalized, but the team confirmed it would be shared in an upcoming update [1]. This approach aims to streamline the process and ensure transparency, reducing the manual effort typically involved in such scenarios.

The outage also had a temporary impact on Hyperliquid’s native token, HYPE, which dropped by approximately 3.75% during the incident and continued to trade slightly lower afterward [1]. The situation has sparked discussions around the resilience of DeFi infrastructure, particularly under high-traffic conditions. The event underscores the importance of robust API systems and clear post-incident communication in maintaining user trust and confidence [4].

Hyperliquid’s response reflects a broader industry trend where decentralized platforms are adopting automated solutions to address user concerns and improve operational efficiency. By taking a proactive approach to compensation, Hyperliquid is signaling a commitment to accountability and user satisfaction, both of which are vital for long-term growth in the competitive DeFi landscape [2].

Source:

[1] The Block – [Hyperliquid-outage-refund](https://www.theblock.co/post/364861/hyperliquid-outage-refund?utm_source=rss&utm_medium=rss)

[2] AInvest – [Hyperliquid to Automate Refunds for API Disruption Affecting Users](https://www.ainvest.com/news/banco-santander-2025-q2-earnings-catalyst-shareholder-strategic-growth-2507/)

[4] The – [Hyperliquid API Outage Halts Trading, HYPE Drops](https://m.economictimes.com/crypto-news-today-live-30-jul-2025/liveblog/122982426.cms)