AWS Users Flag New Disruptions Following Major October Outage

byKae Thorne
AWS Users Flag New Disruptions Following Major October Outage
Takeaways
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  • User reports for AWS service issues peaked on November 1, 2025, primarily affecting US East regions and impacting login and withdrawal functions for platforms like Coinbase
  • AWS officially maintained that all services were operational on November 1, contrasting with Downdetector data showing elevated complaints around 6:49 PM EDT
  • The reported November disruption occurred weeks after a confirmed October 20 major outage, intensifying market focus on cloud centralization risks for the crypto industry, which relies heavily on AWS

User reports detailing server connection failures and login issues on Amazon Web Services (AWS) systems peaked on Saturday, according to data from Downdetector. The elevated complaints, primarily focused on U.S. East regions, occurred weeks after a major, confirmed outage in late October, intensifying scrutiny on cloud centralization risks across finance and digital assets. 

AWS Health Dashboard showed its services remained operational throughout the period.

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Downdetector Reports vs. AWS Official Status

Downdetector recorded elevated user reports Saturday, reaching a peak around 6:49 PM EDT. According to Downdetector data analyzed for the disruption period, 56% of reported problems centered on the critical us-east-1 region. 

The us-west-2 region accounted for 25% of reports, while 20% were attributed to us-east-2. Common issues cited included server connection failures and account access problems, according to Downdetector.

AWS Users Flag New Disruptions Following Major October Outage

However, the AWS Health Dashboard logged no outages as of November 1, stating that all services were operational by the evening. In a support tweet, the @AWSSupport account on X advised users on tracking resources for unexpected issues, relevant for addressing potential user-side attributions.

AWS Users Flag New Disruptions Following Major October Outage

Crypto and Financial Services Reliance Amid Failures

The elevated service reports triggered disruptions for crypto platforms dependent on AWS infrastructure. Coinbase users reported experiencing withdrawal errors during the period. 

On X, user @Lordsmiththegod posted on Sunday that they couldn’t withdraw funds due to a “parameter error” on Coinbase, attributing the issue to AWS problems. Industry reliance on the cloud giant is high. 

Platforms like Coinbase, which rely on AWS for API and hosting, these events highlight vulnerabilities to single-point failures. While no on-chain data was affected, past analysis suggests similar outages could disrupt trading volumes potentially by 10% to 20%. 

User reports also cited delayed services for gaming platforms and retail services like Netflix and Slack.

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Chain Street’s Take

The latest wave of AWS user-reported disruptions underscores a growing structural risk in the digital economy: cloud dependency concentration. While official AWS dashboards show operational stability, external reporting tools like Downdetector reveal periodic disconnects between user experience and provider data.

For industries such as crypto, finance, and real-time trading, where milliseconds of downtime can halt billions in transactions, these incidents highlight the fragility of centralized cloud infrastructure. The recurring nature of the disruptions suggests the need for redundant, decentralized, or hybrid cloud strategies to mitigate systemic exposure.

Frequently Asked Questions

What major action did the Federal Reserve take?
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On October 31, the Federal Reserve injected $50.35 billion into the U.S. banking system using its Standing Repo Facility (SRF). This was the largest single-day liquidity operation since the facility was created in 2021.

Why was this large liquidity injection necessary?
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The injection was needed to relieve growing liquidity stress in the banking system. This stress is a result of the Fed's ongoing quantitative tightening (QT) program, which has removed over $1.5 trillion from the financial system, causing bank reserves to fall to their lowest levels since 2020.

What is the Standing Repo Facility (SRF) and what does its use signal?
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The SRF is a tool that allows banks to borrow cash from the Fed overnight by providing high-quality collateral, like U.S. Treasuries. A spike in its use is a clear signal that short-term funding markets are tight and that there is a high demand for cash reserves within the banking system.

How could this Fed action impact the cryptocurrency market?
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Crypto analysts are watching this closely because an increase in dollar liquidity is often seen as a positive for risk assets like Bitcoin and Ethereum. Historically, periods of Fed intervention and liquidity injections have sometimes preceded bullish cycles in the crypto market, as more cash in the system can lead investors to seek higher returns in alternative assets.

What is the future outlook and what are analysts watching for?
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The Fed has confirmed it will end its quantitative tightening (QT) program by December 1, 2025. Analysts are now watching to see if high usage of the SRF continues. Persistent stress in the repo market could confirm systemic tightness, potentially forcing the Fed into a broader policy pivot that could be favorable for crypto in the longer term.

The author, a seasoned journalist with no cryptocurrency holdings, presents this article for informational purposes only. It does not constitute investment advice or an endorsement of any cryptocurrency, security, or other financial instrument. Readers should conduct their own research and, if needed, consult a licensed financial professional before making any financial decisions.

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