Jupiter’s perpetual trading service faced significant challenges during a period of high volatility in the Bitcoin markets, leaving users concerned about the safety of their funds. The platform, known for its on-chain derivatives trading, experienced issues with failed trades and liquidated positions as Bitcoin’s price swung wildly on Tuesday.
According to reports, Jupiter’s founder, known only as Meow, reassured users that their funds were safe despite the issues. In a message on Telegram, Meow acknowledged the problems and stated that the platform had resumed full operations after experiencing “serious issues” due to a surge in demand.
The volatility in Bitcoin’s price, which reached a record high above $69,000 before a sharp sell-off, led to chaos in the crypto markets. Other cryptocurrencies, including SOL, also experienced significant price fluctuations during this period. The sudden market movements attracted a large number of traders to Jupiter’s perpetual futures service, causing a 100-fold increase in activity compared to normal levels.
Traders on Jupiter’s Discord server reported losing SOL to trades that were not executing properly, raising concerns about potential financial losses. While the exact amount of money lost was not immediately clear, Meow promised to provide an update on the situation on the Discord server.
The issues at Jupiter were attributed to congestion in the platform’s oracles, which are responsible for providing price data to the on-chain smart contracts that facilitate trades. Despite the challenges, Jupiter’s founder expressed a commitment to addressing the problems and making affected users whole.
As the crypto markets continue to experience volatility, platforms like Jupiter will need to ensure that they have robust infrastructure in place to handle increased demand and maintain the security of user funds. The incident serves as a reminder of the risks associated with trading in volatile markets and the importance of due diligence when choosing a trading platform.