A Paradex trader is claiming major losses after a sudden account lock that wiped out $218,922 in option positions. The user says they first noticed unusual pricing on low-volatility options and even reported it through a bug-bounty email. But when profits couldn’t be withdrawn and market makers didn’t adjust the prices, they kept trading normally.
Days later, Paradex confirmed there had been a pricing mistake but instead of fixing the issue, the platform flagged the trader as an “attacker,” froze the account, and force-closed all positions. The user is now demanding answers, while the incident raises fresh concerns about how platforms handle technical errors and trader rights in high-risk markets.