Aster Compensates Users After XPL Perp Glitch Sparks Losses

• Aster reimbursed XPL traders in USDT after a $4 price spike caused liquidations.
• Reports tied the glitch to a misconfigured index and capped mark price on Aster.
• Aster still posted $16.3M in daily trading fees despite disruptions in XPL contracts.

A sudden glitch in Aster’s XPL perpetual contract on Thursday, September 26, led to unexpected liquidations after abnormal price movements. The incident saw XPL surge to over $4 while trading near $1.30 elsewhere. Aster, a decentralized perpetual exchange backed by YZi Labs and linked to Changpeng Zhao, had fully reimbursed affected traders in USDT.

Abnormal Price Movements Trigger Liquidations

According to Aster, the XPL contract malfunction caused prices to detach from the broader market, spiking far above spot levels. Traders holding short positions were hit by forced liquidations during the sudden move. 

In response, Aster paused activity and confirmed all liquidated accounts would be reimbursed directly. Within three hours, compensation was distributed, with users reporting restored balances in USDT. 

The platform also covered associated trading and liquidation fees, which are normally charged during automatic position closures. The team stated on X, “Rest assured, all user funds are SAFU,” assuring the community that investigations into the disruption were underway.

Reports Point to Misconfigured Index

Community speculation quickly followed, with some traders attributing the spike to a misconfigured index price during Aster’s market transition. According to on-chain analyst Abhi, the index price for XPL had been hardcoded at $1, while the mark price was capped at $1.22.

When the cap was lifted without reflecting the live market rate, the contract jumped toward $4 before correcting. This led to a series of liquidations despite XPL trading steadily near $1.30 on other exchanges. Aster has not confirmed these technical claims but acknowledged that internal reviews were ongoing.

Some users estimated that total reimbursed liquidations ran into millions of dollars. Others noted deductions in trading points despite receiving direct compensation, raising further community concerns.

Related: Aster’s Explosive Debut: 1,650% Surge and $1B TVL in First 24 Hours

Aster Growth Continues Despite Glitch

Despite the disruption, Aster’s activity remains strong, with data from Dune Analytics showing $16.3 million in daily trading fees in the past 24 hours. This figure outpaces Hyperliquid, which recorded $4.9 million over the same period.

User adoption is also expanding. The exchange reported more than 2.57 million traders, including 468,000 new accounts added within a single day. Whale activity has also increased, with analyst MarioNawfal noting an accumulation of 55 million ASTER tokens worth about $115 million by one holder.

Meanwhile, liquidation statistics across the sector showed Aster recording $11.1 million in 24-hour liquidations, split between $7.8 million in longs and $3.3 million in shorts. For comparison, Binance saw about $5 million, Bybit $2 million, and OKX $2 million over the same period.

Source: Coinalyze

Technical Factors Behind the Incident

Further reports pointed to Aster’s funding rate miscalculation. The delay in updating price data meant funding fees were calculated inaccurately. This directly impacted short positions, forcing premature liquidations even though external markets did not reflect such volatility.

The exchange confirmed it waived all related liquidation fees in addition to reimbursing affected balances. According to Aster, refunds were processed directly into user wallets, with no manual claim required.

The XPL contract has since stabilized, with trading levels aligning back to other exchanges. Aster stated it continues to investigate the anomaly and pledged to provide further updates as the review progresses.

Meanwhile, Aster’s reimbursement of traders after the XPL perpetual glitch indicates how technical misconfigurations can have effects across decentralized exchanges. The abnormal surge liquidated positions unexpectedly, yet swift compensation in USDT restored user balances within hours. Despite the disruption, Aster’s reported trading activity, user growth, and whale accumulation emphasize the ongoing demand for its on-chain derivatives platform.

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