Decentralized derivatives exchange Hyperliquid has distributed $1.99 million in USDC refunds to traders impacted by a 37-minute API service disruption on July 29. The compensation demonstrates the platform’s commitment to user protection despite technical failures.
The service interruption occurred during record-high trading activity when Hyperliquid registered $14.7 billion in total open interest. Exchange representatives confirmed the outage resulted from unexpected traffic surges rather than any security compromise or vulnerability exploit.
Refunds were systematically categorized based on individual trading impact, with users owed more than $10,000 required to complete KYC verification through Discord before August 18 to receive reimbursement. This structured approach ensured equitable compensation while maintaining regulatory compliance standards.
Notably, this incident follows a previous $6.26 million exploit in March, underscoring Hyperliquid’s operational resilience. The exchange continues to show significant market presence with over $10.6 billion in 24-hour open interest tracked on the platform.
The swift reimbursement initiative highlights Hyperliquid’s dedication to transparency and user trust in decentralized trading environments, setting a precedent for accountability during technical disruptions within the DeFi sector.