Hyperliquid has initiated automated refunds for users impacted by a 27-minute API outage on July 29, 2025, caused by unexpected traffic surges. The platform confirmed the incident affected front-end trading operations but left core smart contracts and backend systems intact, with no security compromise.
Refunds will cover approximately 3.75% of verified trading losses without requiring user claims, as Hyperliquid's systems automatically identify affected accounts. The outage triggered a 5% price dip in Hyperliquid's native token HYPE, though partial recovery has since occurred. In official communications, the Hyperliquid team stated: "We are implementing automated refunds... resulting in a calculated loss of approximately 3.75%" and emphasized the incident was "caused by a traffic surge, not a hack."
This event highlights persistent vulnerabilities in centralized API components within DeFi ecosystems, though the token's recovery signals restored user confidence in Hyperliquid's crisis management.