Several traders were beside themselves earlier this week as they got ‘Bitmex’d’. BitMEX experienced a 60% flash crash in a single candle. This saw many traders suffer liquidation. But as crypto users continue to cry foul, BitMEX has persisted that it had nothing to do with it. Earlier today the exchange has shared more details.
First, what went wrong? On Thursday, a number of BitMEX clients started pointing out on Twitter that their stop losses did not trigger when XRP fell by 58%, notably, on BitMEX only. Many analysts while sympathizing with the traders who lost big, bashed the exchange for letting this happen. In the hours that followed, the exchange made it clear that the flash crash was a result of market factors.
WTF. FUCK YOU BITMEX. This is really not okay! My stop didn´t trigger and my entire bitmex account is fucking gone. Fuck you! pic.twitter.com/WHXbJoiTvL
— Marc de Koning (@Koning_Marc) February 13, 2020
Of course, it did not help that the exchange CEO Arthur Hayes had earlier made a blatant comment about XRP. This made a number of traders skeptical that the flash crash could have been caused by the exchange. In all this, it is important to note that long contracts remained active after the crash with their assets not liquified. Here is the full coverage of the story.
Now BitMEX has come out with a stronger statement about the event. They note that they have tested their systems and they did prevent the liquidation of users’ XRP assets.
We understand traders’ frustration when prices move quickly against their positions. However, we’ve investigated recent activity on our XRPUSD perp and our system performed as expected and prevented liquidations.