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Ethereum Exchange Reimburses Customer Losses After ‘Flash Crash’

An anonymous reader writes:
“The price of ethereum crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange on Wednesday,” reports CNBC, calling it “a move that is being blamed on a ‘multimillion dollar market sell’ order… As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused ethereum to trade as low as 10 cents.” An executive for the exchange said “Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk.”
Though some users complained they lost money, the price rebounded to $325 — and according to a report on one trading site, “one person had an order in for just over 3,800 ethereum if the price fell to 10 cents on the GDAX exchange,” reports CNBC. “Theoretically this person would have spent $380 to buy these coins, and when the price shot up above $300 again, the trader would be sitting on over $1 million.” Yet the currency exchange announced Friday that they’re honoring everyone’s gains, while also reimbursing customers who suffered losses. “We view this as an opportunity to demonstrate our long-term commitment to our customers and belief in the future of this industry.”

Read more of this story at Slashdot.

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