HumidiFi halts trading after internal network issue affects platform funds, user assets safe

HumidiFi, a major Solana-based decentralized exchange, paused trading on August 22 due to an internal network incident that impacted its own funds but did not affect customer assets. The platform uses its own capital for liquidity, so the financial loss is contained within HumidiFi itself. This is the third significant operational disruption for the young exchange since its mid-2025 launch, following a Sybil attack and a website outage. The incident highlights risks of the proprietary AMM model, where the platform bears losses while protecting users. No timeline for resuming trading has been announced yet.