DeFi Frenzy Hits Hyperliquid: Trading Surge Crashes API as Traders FOMO In

Hyperliquid’s infrastructure buckled under the weight of a DeFi trading stampede today—proof that even ‘hyper’ liquidity has its limits.

When the herd moves, it tramples everything

Traders piled into the platform after spotting what looked like easy alpha, overwhelming its API endpoints. The result? A classic crypto bottleneck: too much demand, not enough pipes.

Infrastructure woes meet irrational exuberance

This isn’t just another ‘high traffic’ alert—it’s a stress test for DeFi’s scalability promises. If platforms can’t handle the heat when traders chase yields, maybe the ‘decentralized’ dream still needs some centralized reinforcements.

Another day, another infrastructure casualty in the casino.

Market Activity Remains Heavy

Despite the outage, trading activity on Hyperliquid was still functional. According to the data from Coinglass, Long Short Positions were at $10.26 billion, with the opening of shorts slightly leading at $5.33 billion against $4.93 billion in longs. Margins were at $999.08 million, with shorts accounting for $525.98 million versus $473.10 million for longs. 

All losses amounted to $232.67 million, with losses to shorts being $336.48 million against profits to longs of $103.80 million. Funding fees stood at $69.41 million, with shorts paying $119.59 million and most of the longs trying to earn negative funding fees of $50.17 million.

Hyperliquid native token HYPE dropped 3.33% during the incident and is currently trading close to $43. With quick changes and better infrastructure, the exchange hopes to restore market confidence.

Also Read: Coinbase to Launch Nano XRP and SOL Futures for US Traders