Binance.US Names Real Reason Behind 87 Percent Bitcoin Flash Crash
Binance.US has commented on the reason behind extreme volatility that occurred on the exchange earlier today, claiming that the price drop was attributed to a vulnerability in the trading algorithm of one of its institutional clients:
One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off.
The exchange’s spokesperson told Bloomberg that the issue has now been resolved.As reported by U.Today, the largest cryptocurrency collapsed 87% to hit the $8,200 level.
There was some speculation that the accident was a low-liquidity flash crash, meaning that it wasn't caused by a bug.
https://t.co/VQL7TVykRa had a lack-of-liquidity flash crash this morning. $BTC fell to $8200 for 1 min. I explained why on Youtube (not glitch; per confidential source). Good learning experience on exchanges. (PS: Doesn't affect my bullishness on $BTC; just an exchange failure).— Meet Kevin Paffrath (@realMeetKevin) October 21, 2021