Hyperliquid, the decentralized exchange running on its own Layer 1 blockchain, said it will issue automated refunds to users affected by a trading outage on Tuesday caused by an API server issue.

Trading was disrupted for over 30 minutes starting around 14:10 UTC, with users reporting delays and errors when trying to close positions. The issue led to noticeable price divergences and confusion among traders.

In messages posted on Telegram and Discord, the Hyperliquid team said refunds will be handled automatically once the method is finalized. “Impacted users do not need to open a ticket,” the team wrote, adding that more details would be shared in the coming days.

Initially, the exchange’s status page didn’t reflect the outage, but a later update confirmed a “major outage” linked to a surge in traffic—not a hack or exploit. “The API servers experienced a significant spike in traffic, leading to order delays from approximately 14:10–14:47 UTC,” the team said.

Hyperliquid noted that its blockchain infrastructure—including block production and the HyperEVM—continued to function normally during the downtime. Transactions were reaching the mempool and being confirmed, but users were getting API errors that made it seem like orders weren’t processed.

The platform also acknowledged confusion caused by the mismatch between front-end errors and back-end confirmations, and said improvements are underway.

The outage follows weeks of record activity on the exchange, with all-time highs in open interest and protocol revenue, according to Hyperliquid. The team referred to the incident as a “growing pain” tied to surging usage.

Hyperliquid’s HYPE token dropped by about 3.75% during the outage and is currently trading at $42.30.