Traders Left Fuming as BitMEX XRP Flash Crash Causes Major Losses

The Flash Crash: A Two-Second Nightmare

On February 13, at precisely 14:00 UTC, traders experienced a dramatic 60% plunge in XRP/USD, plummeting from $0.33 to a mere $0.13 in just two seconds. For those trading on BitMEX, this was less of a market move and more of a horror movie sequel that no one asked for.

Liquidation Failures: Where Were the Safeguards?

Many traders were caught off guard and expressed their frustration online. They claimed that the platform’s safety measures to prevent liquidation during such rapid price changes failed to activate. Instead, traders found their entire balances wiped out quicker than the proverbial turkey on Thanksgiving.

BitMEX’s Response: Business as Usual?

Responding to the uproar, BitMEX stated that its platform operated normally during the crash. In a message that read more like a corporate shrug, they acknowledged the frustration but made it clear they were not taking responsibility. As they put it, “We understand traders’ frustration when prices move quickly against their positions.” Well, at least they get it, right?

The Aftermath: XRP Rebounds, But Traders Are Left High and Dry

As the dust settled, XRP managed to bounce back to $0.33, reaching heights not seen in seven months. But for those who got caught in the crash, the recovery felt like a cruel joke. Startup investor Marc de Koning revealed the sentiments of many when he tweeted, “Not getting back a penny. Outright criminal.” Plenty of traders felt like they had bet all their chips on a game rigged from the start.

Arthur Hayes: A CEO with a Sense of Humor?

BitMEX’s CEO Arthur Hayes had launched a new XRP product just days before the chaos and seemed to take the situation lightly. Hours before the crash, he tweeted about XRP’s recent surge, cracking a joke about the coin’s legitimacy. “CRipple the shorts. Pro Tip: the Buy and Sell buttons are both equally profitable regardless of whether or not you are trading a turd.” Not exactly the empathy you’d expect from a CEO after a disaster, but hey, at least he knows how to keep things light!

The Insurance Fund Dilemma

BitMEX has an insurance fund totaling 34,328 BTC (about $352.2 million), which they claim isn’t meant for situations like the XRP flash crash. So, it looks like this fund might get a group of traders protesting outside its glass doors, bearing placards that read: “Where were you when we needed you?”