Key Highlights
- Aster DEX quickly announced a refund to cover losses from a technical error
- A technical error hit DEX that caused incorrect short liquidations on the XPL trading pair
- The problem was a funding rate miscalculation caused by a platform error
Aster DEX has promised to fully repay traders who lost money due to a technical problem on its platform, which took place on Thursday. The issue caused a wave of automatic account closures for traders betting against a token called XPL.
The announcement is a major step for Aster as it tries to reassure users that their funds are safe, especially after a week of wild swings in the decentralized finance (DeFi) market.
What Exactly Went Wrong?
The problem centered on a key feature of perpetual futures trading, known as the “funding rate.” In simple terms, this is a fee that traders pay or receive periodically to keep the price of a futures contract aligned with the real spot price.
On Aster DEX, a delay in price data caused this funding rate to be calculated incorrectly for the XPL token. This mistake directly impacted traders who had taken “short” positions, meaning they were speculating that the price of XPL would go down.
Due to the incorrect rate, their accounts showed sudden, artificial losses. This triggered the platform’s automatic liquidation system, which forcefully closed their positions to prevent further losses. In reality, these traders should not have been liquidated.
A user on X claimed that the root of the problem was not a complex exploit, but a critical error in setup. The user claims that Aster DEX had initially hardcoded the XPL index price to $1 and placed an artificial cap of $1.22 on its mark price, which was the price used for liquidations. When this cap was suddenly removed, the mark price violently spiked to $4, even though the token’s value remained stable on every other major exchange.
Aster’s Response: “All User Funds are SAFU”
Aster DEX quickly addressed the issue on social media platform X (formerly Twitter). From its official account, the team stated: “We are aware of abnormal price movements on the XPL perpetual trading pair. Rest assured, all user funds are SAFU. We are conducting a full review and will compensate any affected users for losses.”
“SAFU” is common crypto slang. It highlights that the non-custodial nature of the platform means users’ assets are always in their own control.
Beyond the promise of refunds, Aster has also waived the hefty liquidation fees that are normally charged when a position is automatically closed. This shows the platform is accepting full responsibility for the error. The refund process is expected to be automated and completed within the next few hours or days.
This incident did not happen in a vacuum. The XPL token has been at the center of major turbulence lately. Just weeks ago, a rival exchange called Hyperliquid saw over $150 million in liquidations after a trader made a massive error, causing the price to spike uncontrollably.
While Aster’s problem was a technical glitch, it shows the inherent risks in DeFi trading.
What is Aster DEX?
Aster DEX is a major player in the world of decentralized perpetual futures trading. It was formed in March 2025 by merging two other projects and has gained support from major industry figures, including Binance founder Changpeng Zhao (CZ).
The platform is known for its user-friendly features, offering a “Simple” mode for beginners and a “Pro” mode for advanced traders. It also has innovative systems designed to prevent the very kind of “liquidation hunting” that has plagued other exchanges.
For now, the XPL token has stabilized, and trading activity is picking back up.
