CEO Armani Ferrante acknowledged the issues and vowed to reimburse affected users following a coding error during platform maintenance.
Incident Overview
Backpack, a Solana-based trading platform, experienced technical disruptions after scheduled maintenance on July 3, 2025. The restart triggered erroneous futures orders and incorrect balance reports, prompting CEO Armani Ferrante to promise restitution.
Key Events:
Maintenance Timeline:
- Trading halted at 10 a.m. UTC.
- Post-only mode activated at noon.
- Full trading resumed at 12:10 p.m. UTC.
User Reports:
- Abnormal balance fluctuations.
- Reversed withdrawals (e.g., $104,000 converted to 891 SOL).
- Margin debits inflated without justification.
- Disappeared holdings and flipped long/short positions.
CEO’s Response and Compensation Plan
Ferrante attributed the incident to a programming error, calling it "unacceptable." Affected users were instructed to email [email protected] for claims processing.
Safety Measures Reiterated:
- Funds secured via multi-party computation wallets and cold storage.
- No custody infrastructure compromises.
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User Compensation and Airdrop Adjustments
- Reimbursement Policy: Covers inadvertent liquidations or mis-priced fills.
- Airdrop Bonus: Double points for users with active trades on July 3, 2025, as part of Backpack’s native token rewards program.
FAQs
Q1: What caused the Backpack trading errors?
A coding error during post-maintenance reactivation led to incorrect order execution and balance displays.
Q2: How will affected users be compensated?
Email [email protected] with details; Ferrante pledged full reimbursement for verifiable losses.
Q3: Were user funds at risk during the incident?
No—Backpack confirmed funds remained secure in MPC wallets and cold storage.
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Next Steps
Backpack’s engineering team will conduct a post-mortem audit and publish findings. The exchange remains committed to transparency and process improvements.