Hyperliquid API Crash Freezes Trading—HYPE Token Tanks 5% Amid Chaos

Hyperliquid's infrastructure buckled under pressure today as a critical API outage paralyzed trading—sending its native HYPE token spiraling 5% downward.

When code fails, markets flail

The decentralized exchange's blackout stranded traders mid-transaction, proving once again that in crypto, your assets are only as liquid as your platform's weakest endpoint. No workarounds, no mercy—just another Tuesday in Web3 finance.

Reboot roulette

While the team scrambles to restore services, the incident exposes the fragility of DeFi's plumbing. Five percent dips might recover, but trust evaporates faster than a memecoin rally. (Cue the usual 'stress test' PR spin.)

For now? HYPE joins the growing graveyard of tokens punished for their infrastructure's sins—another cautionary tale wrapped in a GitHub issue report.

Hyperliquid downtime shows DeFi fragility

While the issue was resolved quickly, the outage reveals hidden vulnerabilities in many supposedly decentralized services. Although the Hyperliquid DEX and network are decentralized, the website and mobile apps used to access them are not.

Many DeFi platforms rely on centralized servers to run their front ends. Websites and mobile apps are difficult to operate in a decentralized manner, making them a critical vulnerability. Attackers often perform front-end attacks, targeting DeFi protocol websites to carry out phishing or other schemes.

For instance, Curve Finance suffered a website DNS hijacking in May 2025. In September of 2024, hackers took over Ethena Labs’ website, while in 2023, the same thing happened to Balancer. In all of these cases, the underlying blockchain infrastructure was not affected.

HYPE token fell about 5% shortly after the outage, from $45 to a low of $42.87. The token has since recovered to $44.25, but the issue continues to weigh on investor sentiment.