Solana Suffers 9-Hour Outage—$1.2B in Liquidations

Solana $SOL has once again suffered a major outage, this time lasting over 9 hours, leading to mass panic and $1.2 billion in liquidations across decentralized exchanges. The network reportedly crashed due to a bug in the new validator update. Traders were unable to access their funds or close positions, causing widespread losses especially in leveraged trading. SOL dropped 14% immediately, while users flocked to Polygon (MATIC) and Arbitrum (ARB) as alternatives. This marks Solana’s sixth major outage this year, and many investors are calling the chain “unreliable.” Venture capitalists like a16z and Multicoin Capital are reportedly reconsidering further investment in the ecosystem. The Solana Foundation issued an apology but failed to provide a concrete timeline for a fix. The incident has renewed debates about the trade-off between speed and stability. Can Solana recover from this—or has its reputation finally crumbled?