Summary
- Nearly 29% of staked SOL tokens were disconnected on Wednesday due to a routing error at Teraswitch, nearing the 33% threshold that would halt transaction finalization.
- One network, AS20326, contained around 27% of staked SOL, surpassing the 25% limit set by the Solana Foundation, with 94% of its tokens going offline simultaneously.
- Close to 90 validators were impacted, collectively losing 333 SOL in rewards during the incident.
On Wednesday morning, Solana was alarmingly close to losing its transaction finalization capability, with 28.83% of staked SOL going offline due to a single misconfigured route from a hosting provider. The network’s finalization stops at 33.34%, putting it just 4.51 percentage points away from a significant disruption.
The routing provider, Teraswitch, has detailed the incident, explaining that a default route meant to indicate internet access was incorrectly propagated. This miscommunication led to edge routers in Europe and Asia preferring this invalid route, which was eventually rejected by the data center core. As a result, twelve sites across major cities including London, Amsterdam, and Tokyo were unable to forward any valid data, while North America remained unaffected. Engineers resolved the issue within ten minutes, restoring service by 04:16:15 UTC.
1/ Solana got 86% of the way to a halt this morning and it barely registered anywhere.
28.83% of staked SOL went delinquent. Finality stops at 33.34%.
We added up the rewards lost across all 90 affected validators. 333 SOL. pic.twitter.com/EEC2gYwQgz— Marinade 🛡️ (@MarinadeFinance) August 12, 2026
The staking protocol Marinade Finance, which analyzed the situation, found that the outage was concentrated in the autonomous system AS20326, which holds over 118 million SOL—more than a quarter of the total staked on the network. During the outage, 94% of this stake went offline.
80 Million SOL Awaiting Recovery
Marinade discovered that 59 validators managing 80.2 million SOL returned online within the same narrow timeframe in Europe, having opted to wait for the routing issue to resolve rather than switching to alternative routes. Helius, the second-largest validator on Solana, was offline for the entire 33 minutes. Among 74 operators monitored by Marinade, only three—Laine, Cogent Crypto, and Lion3d—managed to recover without issues.
The impact of the outage extended beyond a single provider, with an additional 14.1 million SOL going offline during the same period across other providers like latitude.sh and Allnodes. Marinade noted that this indicates a broader vulnerability in understanding stake failures by hosting provider.
Marinade also assessed its own distribution, revealing that four autonomous systems control two-thirds of the stake allocated through its model, with AS395201 alone holding 36.94%. The firm acknowledged that this concentration is a concern and stated it would reevaluate its limits for network and data center allocations, as well as begin reporting on validators’ hot swap and automatic failover capabilities, which are not currently disclosed externally.
The 333 SOL in lost rewards will be compensated by validator bonds at the end of the epoch. Had the delinquency rate exceeded one-third, transaction finalization would have ceased for all SOL holders, a scenario not covered by any bonds. The last major disruption in Solana’s operations occurred in February 2024, which lasted nearly five hours before service was restored.