Paradex Glitch: When All Positions Vanish at Once

Something strange happened on the Paradex exchange today. All trader positions in one of the perpetual option contracts were closed at a completely non-market price.

On the screenshot, you can see that after a series of trades at 10:30 UTC, the open interest on this option dropped to zero. That means every single position vanished. The option’s mark price at that time was about $750 — yet the positions were closed at just $51.7.

When mispriced trades happen on major exchanges, everyone hears about it. (Remember the Hyperliquid and JELLYJELLY incident?) But when it happens to a niche instrument traded by only a few enthusiasts, the internet stays silent.

How many traders were there? Judging by the trade count — maybe ten, at most. All with tiny positions. Of course, that kind of glitch won’t attract broad attention.

And so it seems like such things don’t happen at all. But they do! Glitches occur. Some traders on Paradex probably got lucky and made an unexpected profit. Maybe they even withdrew it already. Or, more likely, they used it to open a new position with massive leverage and lost it all. Others ended up with losses — and how are they supposed to get their funds back if they were already withdrawn or lost in another trade?

Every exchange carries not only market risk but also counterparty risk — the risk that whoever ended up with your funds will immediately use them in a way that makes recovery impossible.

Swap your crypto on rabbit.io — where your counterparty can’t run away with your money.