- OKX’s native token OKB crashed over 50% in just 3 minutes due to a liquidation cascade triggered by abnormal price fluctuation
- OKX said it will compensate users for losses caused by the liquidation cascade, including on-chain trades
- OKB has a market cap of $2.8 billion, making it the fourth-largest exchange token according to CoinGecko
OKX‘s native exchange token OKB crashed over 50% in just three minutes on Tuesday due to a series of liquidations triggered by an abnormal price fluctuation.
The Flash Crash
OKB slumped from $51 to $25 in the span of three minutes before recovering to $45.64. The 24-hour trading volume rose by 2100% to $79 million during this time according to CoinMarketCap.
The exchange said it will compensate users for losses caused by the liquidation cascade, including on-chain trades.
“The platform will fully compensate users for additional losses caused by abnormal liquidation, including pledge lending/margin trading/cross-currency transactions,” OKX wrote. “The specific compensation plan will be announced within 72 hours.”
Flash crashes are common in crypto markets due to thin liquidity distributed across venues. OKB’s 2% market depth is between $224,000 and $184,000, meaning a sell order over $224,000 could trigger another cascade.
OKB Background
OKB has a market cap of $2.8 billion, making it the fourth-largest exchange token according to CoinGecko.
