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Deribit Reimbursed $1.3M in User Losses Following Flash Crash

Cryptocurrency options and futures trading platform Deribit has announced that it has used its own funds to compensate users who were negatively affected by a flash crash in the price of Bitcoin on the exchange.

“We naturally regret this incident from happening but believe we have fairly compensated all involved and will focus on further improving our index and liquidation engine to prevent similar incidents (sic),” Jansen told Finance Magnates. 

A smaller flash crash on Coinbase preceded Deribit

Deribit’s flash crash was preceded by another flash crash of a smaller magnitude on cryptocurrency exchange Coinbase Pro. Roughly one hour before the Derebit crash, the price of BTC on Coinbase Pro sharply dropped form $9,260 to $9,055.

Additionally, at least one user reported that their stop-loss order was “deleted” before it was executed. Quoting a user on the Dojo trading forum, CoinDesk wrote that one user said that “Coinbase crashed as far as I can see. And it deleted my Stop Loss as it happened, nothing sold for me despite the price being lower than where my stop was.”

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