February 13, 2020 | AtoZ Markets – After a sharp rally, the price of XRP, the third biggest cryptocurrency, has unexpectedly crashed from $0.32 to $0.14 in one trading candle on BitMEX exchange. Now, XRP traders are enraged while counting their losses from the trading glitch.
XRP price flash crashes to $0.14, liquidating many traders
Jacob Canfield, Bitcoin analyst, noted the Ripple price crash had wide repercussions and was not a harmless mistake.
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
But with the effect of futures, BitMEX is now even risker. The exchange triggers liquidations in cases of significant and rapid price moves, taking away traders’ collaterals. The potential for gains from liquidations has sparked speculations for deliberate triggering of events to cause liquidations.
XRP rally couldn't prevent liquidations
The flash crash and liquidations happened at a time of great enthusiasm for the future of XRP. The asset has been expecting a bigger breakout, supported by its large community. The enthusiasm for XRP even brought down the Fiatleak website:
? SITE ALERT ? The site is wobblying and staggering under the combined weight of many, many thousands of #XRP fanatics watching a technical breakout.
— fiatleak (@fiatleak) February 13, 2020
We're working on it, but keep trying...you can't break the site any more than you already are!
XRP, which went as high as $0.33, was having one of the most successful days of the year, with trading volumes exceeding $6 billion in the past 24 hours. But the rally was unstable, and the losses on BitmEX were a mix of traders who misunderstood the platform, as well as unexpected illiquidity.
Completely agree that anyone who gets liquidated on one trade is an absolute moron....but, 60% drop in a 30min candle? Come on bro that's some fucking bullshit right there, I'd be furious too
— ??Benjamin Blunts?? (@SmartContracter) February 13, 2020
Will BitMMEX compensate XRPUSD traders?
At the moment, BitMEX exchange has not indicated that it would use its reserves to compensate the affected traders in the XRP market. The exchange recently caused significant liquidations on BTC, when the price moved down 4% in another trading anomaly.
XRP price was also highly unstable this morning, as Binance also noted a trading glitch. The price anomalies for XRP were due to an order book delay, and not related to the event on BitMEX. Binance also caused confusion across all types of assets, fostering a brief BTC flash crash.
What do you think about the Ripple price crash on BitMEX exchange? Share your thoughts in the comments section below!