On October 31, cryptocurrency derivatives exchange Deribit’s BTC contact price crashed 15%, due to a bug in the system, leading to traders losing money.
The incident with Deribit’s BTC index occurred on October 31 around 21:00 UTC and resulted in trading BTC contracts for the price of $7,700, when the actual price was above $9,000. Due to this artificial price drop, multiple liquidations were triggered and traders lost their positions.
According to the founders’ statement, the BTC index calculation mechanism got confused, “due to a bug” in the Deribit system. The company took full responsibility and reassured customers that the bug is fixed and the traders that lost the money have been reimbursed.
Nevertheless there are speculations that the system malfunction was triggered by the fact that Coinbase Pro was down at the time the error occurred, as Coinbase is one of the seven exchanges on which Deribit relies for calculations.
On November 1, the derivatives exchange promised to compensate traders’s losses, which occurred due to issues with the BTC index calculation mechanism, for a total amount of 150 BTC or $1.3 million, shared company founders John Jansen and Marius Jansen on the blog.