Backpack, a popular cryptocurrency exchange, recently experienced a trading halt for scheduled maintenance that resulted in account errors for several users. The platform went offline at 10 a.m. UTC on July 3 and reopened two hours later, triggering balance discrepancies and order reversals upon restart.
Users were warned in advance about the maintenance schedule, which included a post-only mode from noon to 12:10 p.m. to allow maker orders while blocking taker activity. However, when spot and perpetual markets resumed, some customers reported abnormal balance changes and order inconsistencies.
One trader, known as Defi Remora, shared on social media that a $104,000 withdrawal request he had made was reversed, and his margin debit increased significantly. Another user, Hebi, reported that his long positions had inexplicably turned into short positions and some holdings had vanished from his account history.
In response to the issues, Backpack CEO Armani Ferrante acknowledged the errors as a programming mistake and promised a thorough review to prevent similar incidents in the future. He encouraged affected customers to reach out via email for restitution, assuring them that their funds were secure due to the platform’s robust security measures.
Ferrante did not provide a timeline for the post-mortem analysis but assured users that the company would disclose its findings after completing an internal audit. He also reaffirmed Backpack’s commitment to compensating users for any losses caused by exchange malfunctions.
To make amends for the disruption, the exchange announced that users with active trading positions on July 3 would receive double the points for a potential airdrop of a Backpack native token. This gesture aimed to appease affected users and demonstrate Backpack’s dedication to customer satisfaction.
As the cryptocurrency market continues to evolve, incidents like these serve as a reminder of the importance of reliable and secure trading platforms. Backpack’s response to the maintenance mishap highlights the significance of transparency, accountability, and customer support in the digital asset ecosystem.