Solana network nearly halts after routing failure

Solana nearly lost transaction finality after a Teraswitch routing failure took 28.83% of staked SOL offline, impacting 90 validators and raising concerns about network resilience and validator concentration.

On August 12, 2026, Solana's network narrowly avoided a halt in transaction finality after a routing failure at infrastructure provider Teraswitch caused 28.83% of staked SOL to go offline. This incident brought the network close to the critical 33.34% threshold, above which transaction finality would stop. Approximately 90 validators, mainly in Europe and Asia-Pacific, were affected for about 33 minutes, resulting in a loss of around 333 SOL in rewards. The disruption was traced to a routing error at Teraswitch's Miami site, which was incorrectly propagated to multiple international locations, leaving twelve sites without valid forwarding paths. North American infrastructure remained unaffected. The event highlighted concerns about validator concentration, as a single autonomous system hosted over a quarter of the network's staked supply, exceeding recommended limits. The incident has prompted calls for improved validator redundancy, infrastructure reliability, and greater stake diversification to mitigate future risks.