A critical technical failure on the Starknet-based decentralized derivatives exchange Paradex caused Bitcoin's price to momentarily display as $0, triggering mass liquidations and forcing an unprecedented chain rollback. The incident occurred on January 19, 2026, following a database migration as part of routine maintenance.
The Paradex team confirmed that the migration generated incorrect pricing data, which led to the erroneous BTC price feed and subsequent liquidations of open positions. In response, the platform halted all services, including its interface, RPC services, and bridge, for approximately eight hours. To resolve the issue, Paradex executed a chain rollback, reverting the blockchain to block 1,604,710 (UTC 04:27:54), effectively erasing all trades, transactions, and position adjustments made after that point.
As part of the emergency measures, all open orders on the platform were forcibly canceled, although take-profit and stop-loss (TPSL) orders were excluded from this cancellation. The exchange assured users that their funds remained safe throughout the process and that account balances were restored to their pre-incident state. Trading resumed at 12:10 UTC after the recovery.
The fallout from the incident extended beyond Paradex, impacting the broader Starknet ecosystem. Starknet's native token, STRK, fell over 3.6% in value following the news of the technical failure and rollback. Paradex, which had recorded a 30-day trading volume of approximately $37 billion prior to the outage, has not yet announced any formal compensation plan for users who may have suffered losses due to the erased trades or unusual platform behavior reported before the rollback.
