February 25, 2018 started as a normal day for most cryptocurrency users and traders.

But it was not the case for traders and users of the Philippine-based cryptocurrency exchange PDAX.

Bitcoin trading for $6000 on the “PDAX” platform:

Philippine cryptocurrency exchange PDAX has suffered a flaw that has resulted in bitcoin trading 88% below its actual price.

The platform reported that the reason for this was the high trading activity.

At the time of the glitch, bitcoin was trading at $50,000, but traders were able to get bitcoin for $6,000.

Although the PDAX trading platform has halted its operations to fix the flaw, it was already a bit too late.

Read:Bitcoin’s dominance in the crypto market reaches its highest level in 3 months

Some users have taken advantage of the loophole and withdraw bitcoins from the platform.

To avoid a huge loss, PDAX has asked traders to return bitcoin or risk facing legal action.

Many users claim to have received messages to this effect.

a #cryptocurrency An exchange glitch at PDAX in Southeast Asia allowed cryptocurrency traders to buy Bitcoin for $6,100 and were able to withdraw the discounted BTC. They may face legal action unless they return it. But PDAX’s terms and conditions say that requests are “final and irrevocable.”

– Luke D. (@lukedalu) February 25 2021

It is still not clear what the legal action will be on the part of the PDAX trading platform.

However, users believe that they have not violated any condition or provision agreed upon by them with the platform.

Causes of the defect:

High volume transactions are becoming a daily occurrence as bitcoin whales ramp up their activity.

Their collective transactions often indicate strong bullish signals or vice versa.

Reports on social media have led to strong suggestions that the malfunction was caused by the movement of a Bitcoin whale.

Read:It is now possible to buy Tesla shares on the Bittrex cryptocurrency exchange

According to some reports, a bitcoin whale sold 316,000 bitcoins for 300,000 Philippine pesos (about $6,100) instead of the actual price of 2.3 million Philippine pesos ($47,000).

This prompted the “PDAX” platform to stop trading activity, temporarily close the withdrawal of users, and then temporarily stop the platform’s work.

Users angry at not being able to access accounts:

PDAX’s attempt to control the situation backfired as it angered many users on social media.

Dear Pdax, Until now the accounts cannot be accessed. A multi-broken promise. Aside from the bitcoin issue, our money is trapped in your platform. Tweet embed Tweet embed Tweet embed

– cauldron and vda wave of dolomite (micel_pangan) February 22 2021

The downtime, which lasted 36 hours, affected the psychology of customers and made them go into a state of anger because they could not access their accounts.

Read:Analysis: Current Bitcoin rally driven by whales with no major short positions yet to be liquidated

They expressed their frustration over lost trading opportunities and accumulated losses from their inability to close their positions.

PDAX eventually released a comprehensive report addressing the issue, telling the platform that an intrusion had occurred on its system and affected its users’ account.

Nickel Jabba, CEO of PDAX, said in a press conference:

It is very understandable that a lot of users were upset that they could not buy what they thought was an offer of Bitcoin at very low prices.

Unfortunately, the underlying bitcoins were never in possession of the platform, so there is nothing to buy or sell at these prices.

Read also:

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