Crypto traders furious at BitMEX

The dangers of leveraged trading of cryptos, which is an unregulated market, were highlighted after account holders on BitMEX trading the US$/XRP pairs trade had their accounts wiped out after a ‘flash crash’ which dropped the price by 60% for 2 seconds wiped out their entire accounts, after stop losses failed to trigger.

BitMEX is refusing to compensate those traders who have lost everything as a result of their stops not activating, resulting in furious comments on social media.

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Crypto traders furious at BitMEX

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The dangers of leveraged trading of cryptos, which is an unregulated market, were highlighted after account holders on BitMEX trading the US$/XRP pairs trade had their accounts wiped out after a ‘flash crash’ which dropped the price by 60% for 2 seconds wiped out their entire accounts, after stop losses failed to trigger.

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The crash occurred at 14.00 UTC on Feb. 13 2020, and  saw the XRP / USD fall 60% from $0.33 to just $0.13, for just two seconds.

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Before the XRP v/ $US flash crash, its year-to-date return was over 70%. As a result many traders were long the pair, as they were betting the trend. This exacerbated the impact of the mega dump.

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Some traders were using leverage of 50, which is about as high risk as it gets if thongs go wrong quickly, as in this case.

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BitMEX is a cryptocurrency exchange and derivative trading platform. It is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles and has offices worldwide.

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BitMEX is refusing to compensate those traders who have lost everything as a result of their stops not activating, resulting in furious comments on social media.

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This shameful episode serves to highlight the risks involved with trading in unregulated markets.

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