Yesterday’s (November 18) Cloudflare outage brought about billions of {dollars} in losses because the web seemingly got here to a standstill. The disruption affected many customers attempting to entry X, Reality Social, Reddit, ChatGPT, Coinbase, Ledger, BitMEX, DefiLlama, and plenty of extra.
Sarcastically, lots of the affected platforms and web sites have been crypto-related, a sector that promotes decentralization. Nonetheless, a single cloud internet hosting protocol happening in Cloudflare subsequently introduced the web to a standstill, highlighting simply how centralized a lot of the World Huge Internet nonetheless is.
The Cloudflare (NET) share worth tumbled -1.09% on the day as buyers started promoting off the inventory amid the outage. It’s at the moment buying and selling for $194.76. Nonetheless, the NET inventory is up +80.43% year-to-date, per Yahoo Finance knowledge.
(SOURCE: Yahoo Finance)
AI-Powered Internet Browser Founder Calls Centralization of Platforms Corresponding to Cloudflare a “Systemic Threat”
David Tomasian, Founder and CEO of the AI-powered internet browser Curious, highlighted the reliance on a small variety of centralized cloud gateways as a systemic threat. He stated;
“At this time’s Cloudflare outage uncovered how dependent we’re on a number of centralized AI and cloud gateways. This can be a systemic threat. The present AI and cloud stack is extremely fragile, which might result in disruptions of salaries, transactions, and enterprise operations throughout an outage like this.
Although we deal with AI like a utility, we nonetheless deploy it like a monolithic internet service. With a lot knowledge concentrated in a tiny handful of exterior servers, a single level of failure can disrupt the complete globe.
The reply is elevated decentralization. Private LLMs working regionally stay out there no matter what’s taking place on the general public web. They don’t shut down when an exterior service breaks. They don’t create collateral harm throughout the economic system.
Centralization can’t carry the burden of an AI-driven world. Outages like it will solely get extra consequential, until we are able to improve decentralization.”
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Cloudflare Again On-line, However Yesterday’s Outage Highlights Vulnerabilities within the Digital Financial system
watching my favourite decentralized censorship-resistant unstoppable crypto web3 app get eviscerated as a result of "cloudflare went down" pic.twitter.com/XUEhUQZuLz
— nader dabit (@dabit3) November 18, 2025
Whereas Cloudflare has since reported all the pieces is again up and working, yesterday’s outage is reported to have value the worldwide economic system a number of billions of {dollars}, with one report that for each hour Cloudflare was down, $15Bn was being misplaced.
Regardless of the quantity, it highlights how when a single cloud supplier experiences points, the impression doesn’t keep contained. It turns into an avalanche, hurtling downhill and affecting a number of industries, touching all the pieces from social media platforms to e-commerce checkouts and back-end fee companies, with crypto platforms additionally closely affected.
Whereas crypto and blockchain platforms have been closely selling the decentralization narrative for a while now, many, if not all, look like nonetheless tied to centralized servers, resembling Cloudflare and Amazon Internet Companies (AWS).
Simply final month, in October 2025, an incident involving AWS introduced the likes of Coinbase, Robinhood, MetaMask, Venmo, and non-crypto companies like Snapchat and Reddit to a grinding halt for a number of hours till the difficulty was resolved.
Cloudflare Says Outage Was Brought on by “Bot Administration Characteristic Challenge”
On November 18 Cloudflare skilled a service outage, triggered by a problem with a Bot Administration characteristic, impacting a number of Cloudflare companies. Right here's an in depth breakdown of what occurred. https://t.co/7WArlr5ghI
— Cloudflare (@Cloudflare) November 18, 2025
Web companies supplier Cloudflare says a fault in its bot-detection system triggered an outage that took down round 20% of webpages, together with a number of crypto platforms.
Cloudflare stated in a autopsy assertion on Tuesday (November 18) {that a} “characteristic file” utilized by its Bot Administration System to struggle off cyberattacks exceeded its customary restrict, leading to a software program failure.
“We’re sorry for the impression to our clients and to the Web generally. Given Cloudflare’s significance within the Web ecosystem any outage of any of our programs is unacceptable.“
The foundation reason for the outage was a configuration file that’s mechanically generated to handle risk site visitors. The file grew past an anticipated measurement of entries and triggered a crash within the software program system that handles site visitors for plenty of Cloudflare’s companies.”
The corporate additionally stated it initially suspected the incident was brought on by a hyper-scale Distributed Denial of Service (DDoS) assault, however confirmed there was no cyberattack or malicious exercise. Cloudflare handles round 20% of web site visitors and powers round one-third of the highest 10,000 web sites, apps, and companies throughout the net.
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