Paradex refunds $650,000 to users affected by a software bug that led to unwanted liquidations on its platform. The company took responsibility and issued repayments to impacted accounts.
Bug caused unintended liquidations
A technical issue on Paradex’s trading platform caused some users to be liquidated incorrectly. Liquidations occur when trading positions are closed due to losses exceeding available margin, but in this case a bug triggered them without proper market conditions. Users reported unexpected losses as a result.
Paradex issues refunds
Paradex said it would return a total of $650,000 to those affected by the bug. Refunds were credited directly to users’ accounts. The company acknowledged the impact and said the repayments aim to make users whole for the losses caused by the error.
Cause of the error
The bug was traced to an internal code problem that miscalculated margin requirements under certain conditions. This led the system to treat some positions as eligible for liquidation when they should not have been. Paradex’s engineering team identified and fixed the issue to prevent further unintended actions.
User and community reaction
Affected users raised concerns on forums and social channels, prompting Paradex to investigate. The refunds were welcomed by many users who had seen their positions closed unexpectedly. Community discussions also highlighted the importance of testing and robust safeguards for automated trading features.
Security and platform response
Paradex said it has strengthened its internal review and testing processes to avoid similar bugs in the future. The company also said it will improve monitoring tools to detect unusual behavior more quickly. Paradex emphasized that user funds remain secure and that it is committed to maintaining trust with its user base.
Impact and future steps
Refunding the losses aims to restore confidence among traders using the platform. Paradex said it will continue auditing its systems and may introduce additional checks around margin calculations and liquidation triggers. The company’s response signals a focus on reliability as the platform evolves.
Conclusion
Paradex refunds $650,000 to users affected by a bug that caused unintended liquidations, fixing the technical issue and compensating traders to protect user interests and improve platform stability.
Source: https://cointelegraph.com/news/paradex-refunds-650k-users-bug-liquidations
