Deribit is exposed to a technical glitch and is forced to pay more than one million dollars to compensate users
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Answer Deribit is exposed to a technical glitch and is forced to pay more than one million dollars to compensate users
Cryptocurrency trading platforms are not immune to internal technical errors, which sometimes have a clear impact on traders.
Recently, a technical glitch occurred or what can be termed as the “Flash problem” common in trading platforms.
The flaw occurred at the level of Bitcoin trading in both Coinbase Pro and Deribit.
The glitch occurred yesterday October 31 at 19.55 UTC as the bitcoin price fell sharply and rapidly from $9,260 to $9,050 on Coinbase Pro.
An hour later, Deribit, which offers the option of trading bitcoin futures, experienced the same glitch as Coinbase Pro, but with a greater severity, as the price of the bitcoin futures contract dropped from $9,150 to $7,720, only to be back after minutes.
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This glitch causes several orders to be executed that traders don’t want to happen.
One of them, @Crypto_boy1 on Twitter, criticized Deribit and how it caused an irreversible trading:
It’s all over.
I would like to withdraw all my money from the platform and never use this platform again.
The image above shows how Bitcoin plunged to as low as $7,720 on Deribit, sending shock waves throughout the derivatives market.
I reacted Deribit provided an official response following the incident, saying that it would try to correct things by changing the price of stop-loss trades to a fixed Bitcoin level depending on the product.
The platform said it would return the shares to the pre-incident level, i.e. at the index price of $9160.
An hour before the Deribit incident, Coinbase Pro users encountered the same issue as their stop-loss orders were “deleted” right before the sharp drop in the bitcoin price from $9,260 to $9,055.
hung A Coinbase Pro user about the incident said:
The price fell below the stop loss order, yet no sell was executed.
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Coinbase crashed and my stop loss was deleted, nothing sold even though the price was lower than the price I stopped at.
After that, the water will return to normal, and the management of the Deribit platform says that it will compensate the affected people and pay more than 1.3 million dollars in losses resulting from the defect.
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She was told that she would not use the platform’s insurance fund, but would replace it with Deribit in another form.
Deribit will make up for over $1.3 million in losses from the release of BTC index account data around 21:00:00 UTC on October 31, 2019.
The Deribit Insurance Fund will not be used to cover these losses, but the compensation will be covered by Deribit.
– Deribit (DeribitExchange) October 31, 2019
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Comparison of futures contracts and margin trading in the world of crypto and digital currencies
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