Backpack, a Solana-based cryptocurrency exchange, experienced significant technical issues following scheduled maintenance on July 3, 2025. The platform resumed trading with erroneous account balances and reversed orders, prompting CEO Armani Ferrante to acknowledge a “programming error” and pledge full user compensation .
Key incident details:
• Scheduled maintenance began at 10:00 UTC, with trading resuming at 12:10 UTC
▪ Withdrawal reversals (e.g., $104,000 withdrawal returned as 891 SOL)
▪ Margin debits unexpectedly tripling
▪ Long positions flipping to short without audit trails
▪ Disappearing holdings from accounts
Company response:
• Ferrante called the situation “unacceptable” in Discord communications
• Affected users instructed to contact support
• Security reassurances issued:
▪ Two-tier MPC wallets with cold storage
▪ Continuous asset reconciliation
• Compensation includes:
▪ Direct reimbursement for financial losses
▪ Double loyalty points for users with active positions
The exchange maintains all user funds remain secure despite the operational glitch. Backpack’s engineering team is conducting a full audit, with findings to be published later.
