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A technical glitch on Paradex sent shockwaves through its trading platform when Bitcoin prices suddenly plummeted to near-zero levels. What happened next was chaos—mass liquidations erupted as the system malfunctioned, triggering cascading sell-offs across positions.
The exchange scrambled to contain the damage and eventually rolled back the affected trades. But the incident exposed a critical vulnerability many traders often overlook: the real risks lurking beneath exchange infrastructure.
This isn't just about one platform's mishap. It raises uncomfortable questions for anyone trading on decentralized or emerging exchanges. System failures can happen. Pricing feeds can glitch. And when they do, the fallout can be brutal for traders caught on the wrong side.
The Paradex situation serves as a stark reminder—always check your exposure, understand platform safeguards, and consider diversifying across trusted trading venues.