Bitget Initiates Compensation for Users Affected by VOXEL/USDT Trading Glitch

Cryptocurrency exchange Bitget has started compensating users impacted by a trading anomaly involving VOXEL/USDT perpetual contracts. The incident occurred on April 20, following an unusual surge in VOXEL’s price. On April 22, Bitget confirmed that transaction rollbacks and account recoveries were “basically completed,” and the compensation process is now underway. Additionally, the exchange is conducting an internal review to address user concerns regarding incorrect fee deductions and inaccurate profit and loss calculations related to the rollback.

What Happened During the VOXEL/USDT Incident?

The trading glitch began on April 20 at approximately 8 a.m. UTC when the gaming token VOXEL experienced an unprecedented price spike, surging over 200% within just 30 minutes. This sudden increase briefly made VOXEL the most traded asset on Bitget, surpassing even Bitcoin in daily trading volume. During this period, VOXEL’s price fluctuated tightly between $0.125 and $0.138 before peaking at $0.1645.

Suspected Market Maker Activity

The anomaly was reportedly linked to suspected market maker activity, which caused orders within the price range to execute instantaneously. Under typical conditions, perpetual futures contracts require an order book where each trade has a counterparty. In this case, however, trades were executed automatically without delay, bypassing the standard process.

In response to the irregular activity, Bitget suspended trading on the VOXEL/USDT contract and froze several accounts suspected of involvement. The exchange assured users that the issue was not due to a system exploit or internal technical failure. However, Bitget has not yet disclosed who or what triggered the abnormal trading activity on April 20.

What Is VOXEL?

VOXEL is the native token of Voxie Tactics, a free-to-play tactical RPG built on the Polygon blockchain. The token serves as both a utility token and in-game currency, playing a crucial role in the game’s reward system and overall economy. Voxie Tactics has garnered attention in the blockchain gaming space, contributing to VOXEL’s rising popularity.

VOXEL’s Recent Price Action

Beyond the Bitget incident, VOXEL has been a trending token in the cryptocurrency market. Over the weekend of April 21-23, the token saw explosive price action, skyrocketing from $0.02 on Friday to an intraday high of $0.17 on Sunday, marking a staggering 750% increase. However, its value has since corrected, dropping to $0.06, though it remains 200% higher than its Friday low.

Key Takeaways for Investors

The VOXEL/USDT incident highlights the importance of due diligence when trading in the volatile cryptocurrency market. Here are a few tips for traders and investors:

  • Understand Market Risks: Cryptocurrency markets can be highly volatile, and unexpected price spikes or drops are not uncommon.
  • Choose Reliable Platforms: Ensure the exchange you use has a track record of addressing issues transparently and compensating affected users.
  • Stay Updated: Follow market news, token announcements, and exchange updates to make informed decisions.
  • Set Stop Losses: Utilize stop-loss orders to minimize potential losses during sudden market fluctuations.

As the cryptocurrency ecosystem continues to evolve, incidents like the VOXEL/USDT glitch serve as a reminder of the importance of vigilance and informed decision-making in this fast-paced industry.

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