In a shocking turn of events, Hyperliquid’s API servers crashed on July 29, 2025, freezing all trading activity for 27 minutes and causing the HYPE token to drop 5%. This incident highlights critical vulnerabilities in DeFi platforms.
Hyperliquid API Outage: What Happened?
The outage began at 4:35 pm ET when Hyperliquid’s API servers failed due to a sudden traffic surge. Key impacts included:
- All trading halted for 27 minutes
- Mobile apps and website frozen
- Users unable to open/close positions or withdraw funds
HYPE Token Drop: Immediate Market Reaction
The HYPE token fell from $45 to $42.87 during the outage, a 5% decline. While it partially recovered to $44.25, investor confidence took a hit.
DeFi Vulnerabilities Exposed
This incident mirrors other DeFi platform failures:
| Platform | Incident | Year |
|---|---|---|
| Curve Finance | DNS hijacking | 2025 |
| Ethena Labs | Front-end compromise | 2024 |
| Balancer | Front-end issues | 2023 |
Lessons from the Hyperliquid Disruption
The outage raises important questions about DeFi architecture:
- Centralized front-ends create single points of failure
- Traffic spikes can paralyze trading
- Transparency in crisis management is crucial
FAQs
Q: How long did the Hyperliquid outage last?
A: 27 minutes, from 4:35 pm to 5:02 pm ET on July 29, 2025.
Q: What caused the HYPE token to drop?
A: The trading freeze created panic selling, causing a 5% price decline.
Q: Was Hyperliquid’s blockchain affected?
A: No, the decentralized backend continued operating – only the front-end failed.
Q: Has Hyperliquid experienced similar outages before?
A: This appears to be their first major API disruption of this scale.
