Aster DEX completed full user compensation within hours after a technical error caused XPL perpetual contracts to spike to nearly $4 while other exchanges maintained prices around $1.30.
The incident occurred on September 25, 2025, triggering unexpected liquidations before the exchange quickly resolved the issue and distributed USDT refunds to all affected traders.
The Technical Breakdown
The problem started around 11 p.m. UTC on September 25 when Aster’s XPL perpetual trading pair experienced abnormal price movements. According to Web3 agency AP Collective CEO Abhishek Pawa, the issue stemmed from a misconfigured index that was hard-coded at $1.
Source: @Aster_DEX
The index price had been set to $1 as if XPL were a stablecoin, rather than the native token of Plasma’s stablecoin-optimized blockchain. Meanwhile, the mark price was capped around $1.22. When this cap was lifted without correcting the underlying index, prices on Aster jumped to nearly $4 even as other exchanges held steady around $1.30.
This sudden price spike created a massive discrepancy between Aster and other trading venues. The result was a sharp wick that briefly froze the trading chart before prices snapped back to realistic levels.
Swift Response and Full Compensation
Aster acted quickly after detecting the unusual price behavior. The exchange immediately posted on social media: “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.”
The platform suspended trading on the affected pair and began calculating losses for impacted users. Within hours, Aster announced that all liquidation losses would be reimbursed directly to user wallets in USDT.
The compensation process happened in multiple rounds. First, users received reimbursements for their liquidation losses. Then, Aster distributed additional compensation covering trading fees and liquidation fees.
Source: @Aster_DEX
“Compensation for the XPL perp incident has now been fully distributed. All affected users have received reimbursement directly in USDT to their accounts,” Aster confirmed in a follow-up statement.
Platform Growth Despite Technical Issues
Despite the technical disruption, Aster posted record-breaking performance metrics. The exchange generated $16.3 million in daily trading fees over 24 hours, more than three times rival Hyperliquid’s $4.9 million.
Daily trading volumes reached a historic $104 billion, with perpetual DEX volumes across all platforms hitting new records. User adoption also accelerated, with Aster reporting over 2.57 million total traders and nearly 468,000 new accounts created in just 24 hours.
This growth occurred even as the incident temporarily affected market sentiment around the platform. Large investors continued showing confidence through significant token purchases, with one whale accumulating 55 million ASTER tokens worth approximately $115 million over two days.
Understanding XPL and Perpetual Trading Risks
XPL serves as the native token for Plasma, a layer-1 blockchain designed for stablecoins. The network provides zero-fee USDT transfers and supports smart contracts through EVM compatibility. Plasma has backing from notable figures including venture capitalist Peter Thiel and Tether CEO Paolo Ardoino.
Perpetual futures trading differs significantly from regular spot trading. Traders don’t directly own the underlying asset but instead bet on price movements through long or short positions, often with heavy leverage. This structure requires precise price tracking mechanisms to maintain fair market conditions.
When these pricing systems malfunction, as happened with Aster’s XPL contract, traders face unexpected liquidation risks. The incident highlighted how configuration errors can create costly disruptions in decentralized derivatives trading.
Market Impact and Trader Reactions
The ASTER token dropped 12% following the incident, trading around $1.80. However, some market analysts view the platform’s quick response and continued growth as positive signals for long-term prospects.
While most affected users praised Aster’s rapid compensation, some traders expressed concerns about missed profit opportunities. These users argued that the reimbursements only covered direct losses but not the potential gains they missed when the system failed to track market prices accurately.
The broader crypto community used the incident to discuss the inherent risks in DeFi perpetual trading. Technical glitches, while rare, can have significant consequences given the leverage and complexity involved in these markets.
Aster has emerged as a major competitor to established platforms like Hyperliquid, particularly given its operation on BNB Chain and indirect connections to Binance founder Changpeng Zhao. The platform offers both simple one-click trading and advanced features like hidden orders designed to protect large traders from front-running attacks.
The Bottom Line
Aster’s handling of the XPL perpetual glitch demonstrated operational maturity in crisis management. The exchange identified the technical error quickly, communicated transparently with users, and completed full compensation within hours. While the incident highlighted ongoing risks in DeFi derivatives trading, Aster’s response helped maintain user confidence and platform growth momentum.
