BitMEX Scandal: Liquidated Traders Are Fuming After XRP Crashed 56%

by: Andreas Townsend

BitMEX made headlines not too long ago after it’s been reported that the XRP army of fans and Ripple enthusiasts were not happy at all to read BitMEX CEO’s opinion about the digital asset.

Arthur Hayes’ mocking of Ripple’s XRP triggered a lot of criticism in the community.

BitMEX decided to announce the listing of XRP/USD perpetual swaps, but Hayes ridiculed the move and mocked the digital asset.

XRP/USD Perpetual Quanto Swap Contract lost more than half of its value

It’s been revealed the other day that one of Bitmex’s newest products, the XRP/USD Perpetual Quanto Swap Contract lost more than half of its value in a really short amount of time.

The asset reportedly fell from $0,32 to $0.14 in one five minute candle, according to the reports coming from CCN.

Some traders took to Twitter to express their disgust and frustration over BitMEX.

Users’ crypto holdings were liquidated

One of the traders even claimed that his stop-loss failed to trigger and this means that all his crypto holdings were liquidated.

More than that, BitMEX will not be compensating him for his losses, according to the same online publication mentioned above.

CCN writes that “when trading derivatives, such as the XRP/USD Perpetual Quanto Swap Contract, you’re trading on leverage. This means your earnings are multiplied if the trade works in your favor. On the other hand, you can lose all of your holdings quickly if the trade goes against you.”

It’s also worth noting the fact that before XRP/USD flash crashed on BitMEX, the pair was really bullish.

But this Thursday, entire accounts were liquidated as stops failed to execute. Many traders lost everything they had on BitMEX.

CCN also notes that some traders created a petition in which they were asking BitMEX to give the crash victims an immediate refund.

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Andreas Townsend Author

I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.

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