The cryptocurrency market experienced substantial liquidations totaling over $305 million within a four-hour period, with more than $215 million liquidated in the last hour alone. These market disruptions coincided with an API outage at Hyperliquid on July 29, which the company attributed to a spike in traffic rather than a hack or exploit. Hyperliquid announced plans to issue automated refunds to users affected by the outage. One notable case involved a user depositing $1.28 million to Hyperliquid in July, subsequently losing nearly the entire amount following a $2.99 million liquidation of the kPEPE token, and then withdrawing a final $32,930. The company’s response aims to address user losses and restore confidence after the technical issues.