HYPE drops slightly as Hyperliquid experiences brief downtime and order execution issues

Multiple Hyperliquid traders reported that their trades were not executing on Tuesday, raising concerns about a potential outage. On the community’s official Discord, a representative stated that there is an issue under investigation and that updates will be provided.

The first reported issues started filtering in at about 14:20 UTC before a Hyperliquid official confirmed on Discord that the service was operational again at 14:47 UTC, indicating about a 20-minute outage. Hyperliquid’s status page did not show an issue on Tuesday in either the frontend, API, or Layer 1.

HYPE, the blockchain’s native token, dropped as much as 3.75% to trade at $43 during that period before rebounding slightly, according to The Block’s price page.

Luke Cannon, who calls himself a prominent Hyperliquid community member, said on X that the project’s API was malfunctioning, causing issues with the Hyperliquid frontends. BasedApp, a trading app built on Hyperliquid and backed by Delphi, Hashed, and Spartan, also confirmed that order placement on its app had been impacted by HyperLiquid’s downtime.

However, a BasedApp representative told The Block in a direct message that its service is now functioning normally.

According to a screenshot taken during the downtime, prices began to diverge on the platform due to the inability to close positions. The price of ETH, for instance, diverged by about $9.

Hyperliquid is a popular decentralized perpetual futures exchange built on its own high-performance Layer 1 blockchain, HyperEVM, offering fast and low-fee leveraged trading through an onchain order book. It remains unclear what caused the outage.

The Block reached out to Hyperliquid for confirmation.

This is a developing story.