Cryptocurrency platform Trade XYZ has compensated traders for losses following a technical glitch that led to the loss of positions worth nearly $60 million.
The technical glitch on the Trade.xyz platform, which resulted in the liquidation of long positions worth approximately $60 million, occurred on July 27, 2026, due to an anomalous order on the Korean pre-market platform NXT. The incident is linked to the operation of an oracle, a system that gathers external data to calculate the mark price (the base price of an asset) on derivative markets. The glitch automatically liquidated long positions on several cryptocurrency pairs, even though no corresponding market conditions were present. As a result, many users lost their open trades without any objective price signals. According to Galaxy Research, about 960 accounts with long positions valued between $57 million and $80 million were liquidated.
This situation sparked a wave of discontent within the community, but the Trade XYZ team responded promptly to the issue. Following an internal investigation, they confirmed the technical error and announced full compensation for all affected traders. The platform's management emphasized that client trust remains the company's top priority and promised to enhance control over the stability of the trading infrastructure.
Compensations were credited to users' accounts in the form of tokens of equivalent value. Additionally, the exchange conducted an audit of the system to prevent similar glitches from recurring. This step helped partially restore Trade XYZ's reputation, as market participants appreciated the transparency of the platform's actions and its willingness to take responsibility for technical failures.
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