According to CoinDesk, Jupiter, an on-chain derivatives trading platform, experienced difficulties during high volatility in the Bitcoin markets. Users reported failed trades and liquidated positions, while the platform assured them that their funds were safe. Jupiter, one of the largest venues for swapping perpetual futures contracts of Solana tokens, faced issues with its infrastructure for tracking crypto prices.
The extent of the problem was not immediately clear, but traders on Jupiter's Discord server claimed they were losing SOL to trades that were not going through. A message sent to users who filed tickets read, 'There's currently congestion happening with oracle, rest assure the funds are safe and failed position funds are returning to your wallet shortly.' On-chain trading platforms like Jupiter rely on oracles, or price data feeds, to manage their operations. However, during periods of high volatility, these oracles can falter, particularly when on-chain trading spikes, leading to a cascade of issues.
Tuesday's volatility in the Bitcoin markets, with the cryptocurrency reaching a record high above $69,000 only to drop about 5% within minutes, created such a situation. Other assets, including SOL, followed the market leader's record-setting pump and subsequent crash.