Bitget's Tricky Tangle: Market Manipulation or Technical Snafu?
Accounts involved in a $20M VOXEL token manipulation incident face legal action from Bitget.
Take a seat and let's dive into the juicy details of the recent drama unfolding on cryptocurrency exchange Bitget.
What's the Tea?
Bitget has taken a swing at eight trading accounts, believed to be part of a shady arbitrage crew, for allegedly manipulating the trading of VOXEL, the native token of Polygon-based game Voxie Tactics, and pocketing over $20 million in illicit profits.
The rollercoaster ride kicked off on April 20 when the price of VOXEL skyrocketed by a whopping 560% in just 48 hours, jumping from $0.021 to $0.139. Since then, the token has taken a nosedive to $0.074, marking a 47% decrease post-incident.
Was it Manipulation or a Tech Fail?
During the incident, VOXEL/USDT perpetual futures trading saw a whopping $12 billion in volume – enough to make Bitcoin's volume on Bitget seem pitiful. Some experts claim a malfunction in Bitget's trading bot triggered repeated trades within a narrow price range, creating a golden opportunity for cunning traders to rake in the dough.
Rumor has it that some users pocketed six-figure profits by investing as little as $100! Bitget's boss, Gracy Chen, has confirmed that the dirty deeds weren't done by the platform itself but by individual market participants.
However, Bitget insists that only the eight culpable accounts would face legal action while the rest of the users are in the clear. Bitget has also promised to publish a comprehensive report on the incident and redistribute the recovered funds to affected users via airdrops.
Reactions from the Crypto Community
The crypto community is lounging in the digital grandstand, watching the action unfold with a mix of skepticism, support, and side-eye. Some folks compare Bitget's move to a casino swindling lucky winners, while others call out the exchange's hybrid custody model for putting users at risk and encouraging market manipulation.
Undeterred, Bitget stands tall, reporting over 100 million users worldwide and a $20 billion daily trading volume. The exchange has also declared that all account functions have been restored as of April 23.
Stirring Up More Trouble – The Hyperliquid Incident
Just when you thought the drama was over, another exchange – Hyperliquid – faced a similar situation on March 27. A whale allegedly exploited liquidation parameters to snatch at least $6.26 million from the Jelly my Jelly (JELLY) memecoin. Hyperliquid has since wiped perpetual futures tied to the JELLY token from their exchange.
The Lowdown – A Combination of Woes
The VOXEL fiasco on Bitget involved both technical glitches and alleged market manipulation schemes. Initially, a trading bot malfunction caused the VOXEL surge, followed by eight accounts exploiting the volatility to earn millions. As Bitget digs deeper and unravels the webs of deceit, they’ll have a tough time separating the wrongdoers from the innocent players.
- Amid the controversy, Bitget's eight suspected arbitrage accounts are accused of manipulating Bitcoin's competitor, VOXEL, and amassing over $20 million in illicit profits.
- The incident on Bitget’s cryptocurrency exchange led to a price surge of VOXEL, with a whopping 560% increase in just 48 hours.
- After the price spike, VOXEL took a steep dive, reaching $0.074, marking a 47% decrease in value post-incident.
- Some experts claim a glitch in Bitget's trading bot triggered repeated trades, creating an opportune situation for savvy traders to cash in.
- Bitget has since confirmed that only the identified accounts will face legal action, with promises to release a detailed report on the incident and redistribute the recovered funds to affected users.
- Meanwhile, another exchange, Hyperliquid, faced a similar issue with a whale exploiting liquidation parameters and making off with over $6 million from the JELLY memecoin, leading to the removal of perpetual futures tied to the token.
