Hyperliquid compensates traders after technical failure
Date: 2025-08-05 Author: Henry Casey Categories: BUSINESS
On August 4, the Hyperliquid platform began paying compensation to users affected by technical issues that occurred on July 30. According to Hypurrscan, the total amount of refunded funds exceeded $1.9 million. The cause of the incident was an overload of API servers, which led to errors in order execution.
The problems began when the total volume of open positions on the platform reached $14.7 billion. Users noticed delays in the execution of trades and assumed that there was a hack. However, the Hyperliquid team explained that the API was giving errors, despite the fact that transactions continued to correctly enter the mempool and were confirmed by the blockchain.
The very next day, July 31, the developers announced their intention to compensate the losses of all affected users. The payments were organized into three categories. Owners of small deposits — up to $10,000 — received compensation in full without additional conditions. Those who suffered losses in excess of $10,000 were given an advance payment of $9,999. To receive the remaining amount, such traders must complete the KYC verification procedure via Discord before August 18.
The community responded positively to Hyperliquid's actions. One user under the pseudonym aaalex.hl reported that more than $1.5 million had already been transferred to the victims. He emphasized that the platform had no legal obligations to users and acted solely on its own initiative.
Some traders noted the high level of responsibility of Hyperliquid and its desire to maintain customer trust. Such a reaction from the exchange was perceived as a sign of a serious attitude to the quality of service.
Amid the news, the HYPE token, owned by the platform, showed growth. According to CoinGecko, the asset price increased by 2.8% and reached $38.6.
Recall that on July 30, there was also a failure in the Polygon network, due to which the blockchain temporarily stopped processing transactions and creating new blocks. These events once again brought to the forefront the issues of the stability of the DeFi platform infrastructure.
