The All-Pairs Shortest Paths (APSP) problem is one of the fundamental problems in theoretical computer science. It asks to compute the distance matrix of a given $n$-vertex graph. We revisit the classical problem of maintaining the distance matrix under a \emph{fully-dynamic} setting undergoing vertex insertions and deletions with a fast \emph{worst-case} running time and efficient space usage. Although amortized algorithm with $\tilde O(n ^ 2)$ update-time has been known for nearly two decades [Demetrescu and Italiano, STOC 2003], the current best algorithm for worst-case running time with efficient space usage runs is due to [Gutenberg and Wulff-Nilsen, SODA 2020], which improves the space usage of the previous algorithm due to [Abraham, Chechik, and Krinninger, SODA 2017] to $\tilde O(n ^ 2)$ but fails to improve their running time of $\tilde O(n ^ {2 + 2 / 3})$. It has been conjectured that no algorithm in $O(n ^ {2.5 - \epsilon})$ worst-case update time exists. For graphs without negative cycles, we meet this conjectured lower bound by introducing a Monte Carlo algorithm running in randomized $\tilde O(n ^ {2.5})$ time while keeping the $\tilde O(n ^ 2)$ space bound from the previous algorithm. Our improvement is made possible using a novel multi-layer approach that exploits the gaps between hops (number of vertices traversed) of paths.

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