Crypto Crash Panic: Coinbase Goes Down as Bitcoin Hits $85K and $919M Shorts Get Wiped Out

Crypto Crash Panic: Coinbase Goes Down as Bitcoin Hits $85K and $919M Shorts Get Wiped Out

Dr. Guneet Kaur

Tue, September 22, 2026 at 2:02 PM GMT+3 3 min read

• COIN -1.46%
• BTC-USD -2.21%

Key Takeaways

• Coinbase suffered an outage on Sept. 21 that prevented some customers from buying, selling, trading, or viewing balances across its website, mobile app, and Advanced Trade.

• The disruption hit during a major crypto rally, with Bitcoin surging above $85,000 to its highest level in eight months.

• Coinbase said customer funds remained safe and restored affected services roughly 70 minutes after first acknowledging the incident.

Coinbase suffered a widespread service outage on Monday just as Bitcoin was ripping through $85,000, temporarily leaving customers unable to trade or even view their balances during one of crypto's biggest rallies in months.

The exchange acknowledged the problem at 4:21 p.m. PDT on Sept. 21, saying customers could be unable to "buy, sell, trade, or view balances on multiple services."

Coinbase's website, mobile app, and Advanced Trade were affected. The company stressed that customer funds remained safe.

The timing couldn't have been much worse for active traders.

Bitcoin Surges Past $85K as Coinbase Goes Down

Bitcoin had surged past $85,000 for the first time in eight months, eventually reaching above $86,000 as the market extended a sharp recovery from its summer lows.

The rally was accompanied by a major derivatives shakeout. Nearly $919 million in crypto short positions were liquidated, including more than $557 million tied to Bitcoin, as traders betting against the market were forced out.

US spot Bitcoin ETFs were also attracting fresh money, while Bitcoin had just recorded its first weekly close above its 50-week moving average in roughly 45 weeks.

Coinbase itself benefited from the move before its platform ran into trouble. COIN shares finished Monday 3.5% higher at $201.05, with trading volume reaching roughly 14.4 million shares.

That made the outage particularly frustrating for users trying to react to rapidly changing prices.

Coinbase Fixes Outage in 70 Minutes

Coinbase continued investigating until 4:58 p.m. PDT before implementing a fix at 5:23 p.m.

Eight minutes later, at 5:31 p.m., the company declared the incident resolved. From the first public acknowledgment to resolution, the disruption lasted about 70 minutes.

Coinbase did not disclose the technical cause of the outage.

Some users on X complained that Advanced Trade had disappeared or that parts of the app appeared missing, while others questioned whether a recent update had caused the disruption. Those reports were not confirmed by Coinbase.

The exchange's official status page currently shows its website, mobile platform, and Advanced Trade as operational.

How Many Traders Were Potentially Affected?

Coinbase has not disclosed how many customers actually encountered the outage, so saying millions were blocked would go beyond the available evidence.

The potential reach, however, is enormous. Coinbase reported $246 billion in assets on its platform as of June 30, along with a 10.3% share of crypto trading volume under its methodology.

The episode also shows why exchange downtime becomes particularly painful during volatile markets. A 70-minute interruption may look brief on a normal trading day, but when Bitcoin is moving thousands of dollars and leveraged positions are being liquidated, traders can lose the ability to react at precisely the moment they need it most.

Coinbase restored trading the same evening. Bitcoin's rally, meanwhile, continued.

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