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XRP Suddenly Plunges to $0 on Bitrue Exchange, Here's What Happened

Wed, 04/26/2023 - 14:30
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Tomiwabold Olajide
Bitrue released official statement
XRP Suddenly Plunges to $0 on Bitrue Exchange, Here's What Happened
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According to users' reports, XRP suddenly plunged to near $0 on Singapore-based crypto exchange Bitrue hours ago.

Some of the users took to Twitter to share screenshots of a devastating wick on the XRP/USDT perpetual trading pair on Bitrue, which liquidated long positions within a relatively short time.

XRP enthusiast and crypto lawyer Bill Morgan commented on the incident on Twitter.

In his explanation, a false wick on XRP futures on Bitrue dropped the XRP price to almost zero. This liquidated XRP long positions even though the price of XRP itself on the market did not fall below $0.46.

Commenting on a screenshot shared by a user, Morgan wrote, "This happened. BitrueOfficial had a lot of long positions open on XRP. Just the sort of happening you would have nightmares about just before a favourable ruling in the case and price increase."

The recent event was most likely a glitch that a user noted had been removed subsequently by Bitrue.

Morgan likewise pointed out that he is unaware if any buy orders were met at very low prices, but long positions were wiped out.

Bitrue releases official statement

Meanwhile, Bitrue Exchange has confirmed the incident and unveiled the corrective steps it is taking. 

Its statement reads: "On April 26, 2023, between 07:15 to 07:16 (UTC), we experienced a technical glitch in our system, which led to certain orders for XRP/USDT being placed with incorrect prices and quantities."

Bitrue says it will be taking the following actions to rectify the matter: first, all positions made between 7:15 a.m. and 7:16 a.m. (UTC) will be reversed, and the margin amount will be returned to user accounts.

Second, for users who have been liquidated, all losses will be nullified, and their margin amount will be refunded to their accounts. For this, it says the settlement price of XRP will be marked at 0.4696, its price taken at 7:15 a.m. UTC.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.