Hyperliquid denies hack rumors, citing high traffic as the cause of the API outage. HYPE token falls 10% as the team plans future improvements.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
3 mins read
The developer team behind the popular Decentralized Exchange (DEX) Hyperliquid HYPE $42.42 24h volatility: 2.2% Market cap: $14.16 B Vol. 24h: $419.37 M has debunked claims that its protocol suffered a hack.
Instead, they attributed the API server issue that caused its outage to a spike in traffic. A Hyperliquid spokesperson noted that more protective and cautionary measures will be implemented to avoid future recurrence.
On Tuesday, July 29, 2025, Hyperliquid suffered an API outage that led to more than 30 minutes of trading downtime.
According to the protocol’s representative, the Hyperliquid page initially showed no issues until multiple traders began reporting problems with trade execution starting at 14:10 UTC on Tuesday.
Immediately, the Hyperliquid security team swung into action, investigating the situation, per a statement published by the representative on the official Discord server.
As of 14:47 UTC, orders were beginning to go through again in real-time. Until now, there is no concrete evidence of a breach, leading the DEX to say the outage was due to a spike in traffic and not exactly a hack or vulnerability exploit.
The DEX later updated its status page, acknowledging the “major outage” and the root cause.
“There was an issue with API servers between 14:10 and 14:47 UTC in which orders were delayed in being sent to the nodes,” it wrote on the status page. “This was due to a significant spike in traffic. There was no hack or exploit.”
Going forward, the team notified its users that further improvements will be implemented in the future. This includes additional protections at various levels of its stack, contributing to the detection of such API server issues.
This way, it can be ensured that its users are protected and would not be impacted by a potential recurrence.
It is worth noting that the API outage negatively impacted the price of HYPE, the native token of the Hyperliquid protocol. HYPE is currently trading at $43.10, following a 2.92% dip within the last 24 hours.
Its 24-hour trading volume has plummeted by over 10% and is now pegged at $501.74 million.
Before this incident, Hyperliquid had recorded some notable wins. One month ago, the DEX surpassed $1.571 trillion in 12-month trading volume. It also earned $56 million in fees and revenue in June, bringing its cumulative revenue to $310 million.
In a move that also means well for Hyperliquid, Sonnet BioTherapeutics, Inc., agreed to a merger with Rorschach I LLC to become Hyperliquid Strategies.
Some of the participants in the transaction are Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
The new company, Hyperliquid Strategies, was born, holding 12.6 million HYPE tokens and $305 million in cash, totaling $888 million.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
