Paradex Rollback Erases Trades Following System Failure

Paradex, a perpetual decentralized exchange built on Starknet, has confirmed a chain rollback after a major system failure. The incident happened following database maintenance, which caused huge service outages across the platform.

The rollback returned the network to block 1604710. Paradex shared the update publicly and said the decision was made to protect user funds and restore system stability.

🚨 UPDATE: Starknet perp DEX Paradex confirms a rollback to block 1604710 following database maintenance issues. pic.twitter.com/TYZaaOYtME

— Cointelegraph (@Cointelegraph) January 19, 2026

What Went Wrong for Paradex

The issue started during routine database maintenance. Shortly after, users started reporting problems across the platform. The user interface stopped working for many traders, and at the same time, the bridge and RPC services also failed.

Because of these issues, many users could not trade, withdraw or interact with the platform as expected. As the situation worsened, Paradex decided to roll back the chain to a point before the failure occurred.

What the Rollback Means

By rolling back the chain, Paradex restored all user balances to their state before the incident. This move helped to keep user funds safe from being lost due to technical errors.

However, the rollback also erased all trades that happened after the selected block. This means some traders lost positions, profits or losses that happened during that time.

In particular, some users reported abnormal funding rates before the rollback. These traders may now face losses that are not automatically reversed. As of now, Paradex has not confirmed whether it will offer compensation.

Community Reaction

Many users appreciated Paradex’s quick response and public communication. Transparency during outages is rare in DeFi, and some praised the team for acting fast.

At the same time, others raised concerns about trust. Rollbacks are unusual in decentralized systems. When they happen, they can make users question how decentralized and reliable a platform truly is.

Some traders also said that without clear compensation plans, confidence in the platform could weaken.

What This Says About Layer-2 DeFi

The Paradex rollback incident highlights risks within Layer-2 DeFi systems. While these platforms aim to be faster and cheaper than main chains, they can still face complex technical failures.

Rollbacks remain a last-resort tool. They help protect funds, but they also come with trade-offs. Each rollback raises questions about governance, user protection and long-term trust.

For now, users are waiting for Paradex to explain what comes next. Any decision on compensation or further fixes could shape how the community views the platform moving forward.