Exchange froze for 37 minutes on July 29 with no alerts, raising concerns about transparency and system reliability.
Decentralized exchange Hyperliquid is facing criticism after a 37-minute outage on Tuesday froze trading activity and triggered a drop in its governance token HYPE, which fell over 5% in 24 hours.
Trading Halted, No Official Alerts
The incident began at approximately 14:10 UTC, when users reported that they could no longer place or manage trades, which was a major concern for those holding positions with up to 40x leverage.
Despite the issue, Hyperliquid offered no alerts on its official communication channels. Roughly 23 minutes later, a vague message appeared in Hyperliquid’s Discord server, stating that the team was investigating the issue.
By 14:47 UTC, trading was reportedly back to normal, with a co-founder confirming that orders were again processing in real time.
According to a brief update on its status page, the outage was not the result of a hack or exploit. Instead, the exchange blamed a “significant spike in traffic” that delayed order delivery to its nodes.
A follow-up message stated that improvements would be made to prevent future disruptions, including additional protections to detect API server issues.
No Accountability, No Post-Mortem
Despite the public disruption, Hyperliquid has not issued a detailed post-mortem report or taken formal responsibility. The incident has raised concerns about the exchange’s crisis response protocols and overall transparency.
Hyperliquid is a decentralized perpetual futures exchange built on its custom Layer 1 blockchain, HyperEVM. It ranks among the world’s top 10 decentralized exchanges by volume, placing sixth in daily perpetual futures trading during the outage.
Meanwhile, the platform’s governance token HYPE dropped over 5% in the past 24 hours, currently trading at around $42.63, down from its all-time high of $49.86 reached just two weeks ago, according to CoinMarketCap.
Why This Matters
The incident highlights growing concerns around infrastructure reliability and how decentralized platforms respond when real-time performance matters most, especially in volatile and high-volume markets.
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