Hyperliquid Reimburses Traders Nearly $2 Million

On August 4, the decentralized exchange Hyperliquid began compensating clients with a total of approximately $2 million following an API API malfunction. This is evidenced by data from Hypurrscan. 

On July 30, traders of the DEX reported issues with order execution. Initially, users suspected a hacker attack was to blame. However, the Hyperliquid team attributed the malfunction to high load on the API servers. At that time, the total open positions on the exchange reached $14.7 billion. 

“The API interface was returning errors, although transactions were correctly entering the mempool and then confirmed by inclusion in the blockchain,” noted representatives of the DEX. 

On July 31, Hyperliquid promised to compensate for the losses. The payouts were divided into three categories: 

• small traders (up to $10,000) received a full refund automatically;
• large traders (over $10,000) received an advance of $9,999; to receive the remaining amount, they must complete KYC verification via Discord by August 18.

Community Reaction 

Users praised Hyperliquid’s swift response. A trader under the nickname aaalex.hl confirmed that the exchange had already transferred over $1.5 million to clients.

Hyperliquid has started to refund their users due to the recent API outage which lasted around 30 minutes

Over $1.5m has already been sent out to users (can confirm)

Incredible considering they have no legal obligation, no contract or SLA to do this

Hyperliquid pic.twitter.com/PtfuVdWdEs

— aaalex.hl (@pana067) August 4, 2025

“Impressive, considering they had no legal obligations, no contract, or SLA mandating such actions,” he wrote. 

Some noted Hyperliquid’s “exceptional dedication” to its clients. 

Following the news, the platform’s native token, HYPE, rose by 2.8%, according to CoinGecko. At the time of writing, the crypto asset is trading at $38.6.

Back on July 30, the Polygon network ceased processing transactions and producing new blocks.