# Flash Crash Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Flash Crash", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Bithumb Issues Statement Over Reward Payment Error – Details

South Korean cryptocurrency exchange Bithumb has addressed a significant internal error that resulted in the accidental distribution of 620,000 BTC (worth billions) to 695 users during a promotional event, instead of the intended 2,000 KRW reward. The mistake caused a flash crash of approximately 10% on the exchange as some recipients immediately sold the Bitcoin. Bithumb responded by freezing affected accounts within 35 minutes and has since recovered 99.7% of the overpaid BTC. The exchange confirmed the incident was an operational error, not a security breach, and assured users that all customer assets remain safe. The broader crypto market is also noted to have recovered slightly, with its total capitalization rising to $2.34 trillion.

bitcoinistYesterday 17:32

Bithumb Issues Statement Over Reward Payment Error – Details

bitcoinistYesterday 17:32

Bithumb’s Bitcoin glitch explained: balance error, forced selling, and a contained flash crash

On February 6, a system error at South Korea's Bithumb exchange caused a localized Bitcoin flash crash. Approximately 2,000 BTC was mistakenly credited to hundreds of user accounts during an internal process. While users could not withdraw the erroneously credited funds due to insufficient reserves, many quickly sold the Bitcoin on the exchange. This resulted in over 500 BTC being dumped into Bithumb's order books within minutes, overwhelming local liquidity and causing Bitcoin's price to drop over 17% to around ₩81.5 million before partially rebounding. The incident was confined to Bithumb, with global Bitcoin markets remaining stable. The exchange suspended deposits and withdrawals and initiated a system review. On-chain data showed significant outflows from Bithumb but no broader market impact, confirming the event was an internal operational failure rather than a systemic market crisis.

ambcrypto2 days ago 16:40

Bithumb’s Bitcoin glitch explained: balance error, forced selling, and a contained flash crash

ambcrypto2 days ago 16:40

Binance says macro shock, not exchange failure, drove October’s $19B liquidation cascade

Binance has published a post-mortem of the 10 October 2025 flash crash, attributing the $19 billion liquidation wave to macroeconomic shocks—including trade-war concerns and rising bond yields—rather than exchange-specific failures. The report states that 75% of liquidations occurred before two minor technical issues on its platform, which had limited impact. Data shows multi-exchange liquidations, indicating a system-wide leverage unwind. Binance acknowledged temporary balance display errors and index price deviations but emphasized improvements to risk controls. The event underscored the vulnerability of highly leveraged crypto markets to macro shocks and the need for robust cross-venue safeguards.

ambcrypto01/30 22:53

Binance says macro shock, not exchange failure, drove October’s $19B liquidation cascade

ambcrypto01/30 22:53

Crypto hit with $1.8B in liquidations – October repeat or healthy reset?

Crypto markets experienced a sharp $200 billion downturn in late January, triggering $1.8 billion in liquidations—mostly long positions. This sell-off was part of a broader $5 trillion wipeout across U.S. markets, including equities and metals, suggesting a macro-driven risk reset rather than crypto-specific weakness. Despite a bullish backdrop including regulatory progress and political developments, the coordinated decline appears engineered to flush out weak positions and force liquidations, resembling a strategic market shakeout rather than a fundamental shift.

ambcrypto01/30 09:03

Crypto hit with $1.8B in liquidations – October repeat or healthy reset?

ambcrypto01/30 09:03

OKX CEO Star Xu Warns October 2025 Crash Did ‘Lasting Damage’ — Criticism Appears Aimed at Binance

OKX CEO Star Xu has publicly criticized Binance, blaming it for causing "real and lasting damage" during the October 10, 2025 flash crash. Xu accused Binance of prioritizing short-term profits over market health, using aggressive narrative control, and promoting low-quality tokens. The crash, triggered by a market-wide sell-off, led to up to $30 billion in liquidations, exacerbated by Binance's pricing issues and collateral depegging. While Binance defended its actions and offered compensation, the event has intensified rivalry between major exchanges and raised concerns about transparency and risk management in centralized trading platforms.

ccn.com01/29 11:52

OKX CEO Star Xu Warns October 2025 Crash Did ‘Lasting Damage’ — Criticism Appears Aimed at Binance

ccn.com01/29 11:52

From a $270 Billion Peak to a Flash Crash: DeFi Ventures into the Deep Waters of Financial Infrastructure

DeFi in 2025 experienced a dramatic rollercoaster, with Total Value Locked (TVL) surging to a historic peak of $277.6 billion before a sharp "10/11 Flash Crash" wiped out gains, ending the year with only a 3.86% increase to $189.35 billion. Despite volatility, key sectors evolved significantly: - **Staking** matured, with Ethereum securing over 30% of its supply, while Lido’s dominance declined to 24%. Restaking protocols like EigenCloud (TVL peak: $22B) and Ether.fi grew rapidly. - **Lending** hit a record $1.25T TVL, with Aave leading (>50% share). Shift from CDP (e.g., Maker) to money market protocols accelerated. - **DEXs** gained traction, capturing 21.71% of spot trades vs. CEXs at peak. Uniswap remained dominant, while Solana DEXs like HumidiFi challenged with low-fee models. - **Perp DEXs** like Hyperliquid ($3.55T volume) saw explosive growth, though competition intensified from Aster and Lighter. - **RWA** expanded, with tokenized assets exceeding $20B. BlackRock’s BUIDL fund grew to $1.75B, and tokenized commodities surged. - **Stablecoins** faced regulatory shifts (e.g., MiCA, GENIUS Act), with USDT and USDC leading. Yield-bearing stablecoins like Ethena’s USDe rose but later crashed, exposing systemic risks. The year highlighted DeFi’s growth into global financial infrastructure, alongside vulnerabilities in leverage and governance.

marsbit01/06 03:16

From a $270 Billion Peak to a Flash Crash: DeFi Ventures into the Deep Waters of Financial Infrastructure

marsbit01/06 03:16

Silver soars, inflation looms: Is Bitcoin bracing for a flash crash?

Silver's surge to a record $79/oz, with its RSI in extreme overbought territory, signals a broad overextension in legacy assets. This has led to a compelling case for capital to rotate back into Bitcoin, which has been trading sideways. However, Elon Musk notes silver's key industrial utility, making its rally a genuine inflation risk. With input costs rising across sectors, broader inflationary pressures could prevent further Fed rate cuts, keeping November's inflation of 2.7% well above target. This macro stress puts markets in risk-off mode. While Bitcoin could see a bull rally from capital rotation, its sensitivity to macro shifts and the approaching FOMC meeting elevate the potential for another flash crash.

ambcrypto12/28 23:01

Silver soars, inflation looms: Is Bitcoin bracing for a flash crash?

ambcrypto12/28 23:01

Why Bitcoin Briefly Hit $24,000 on Binance — and Why It Didn’t Matter

Bitcoin experienced a brief flash crash on Binance’s BTC/USD1 trading pair on December 24, plummeting from around $87,000 to $24,000 in seconds before quickly recovering. The sharp drop was caused by a large market sell order that exhausted the limited buy-side liquidity on this thinly traded pair, exacerbated by holiday-thin volumes. Arbitrage traders swiftly corrected the discrepancy, and the broader Bitcoin market remained stable around $86,400. Binance clarified that no liquidations or system-wide issues occurred, attributing the event to low liquidity rather than manipulation. The incident highlights the risks of trading low-volume pairs, especially during periods of reduced market participation.

ccn.com12/26 10:25

Why Bitcoin Briefly Hit $24,000 on Binance — and Why It Didn’t Matter

ccn.com12/26 10:25

Bitcoin Plunged on Christmas Eve, Loses 'Santa Rally', Set for Worst Quarterly Performance in Three Years

Bitcoin experienced a rare flash crash on Binance’s BTC/USD1 trading pair, plummeting over 70% from $87.6k to $24.1k before quickly rebounding. The incident, attributed to thin liquidity in the emerging stablecoin pair, did not affect other major trading pairs. Currently trading around $87k, Bitcoin is down over 7% year-to-date and is on track for its worst quarterly performance since Q2 2022. The flash crash highlights the risks of low-liquidity trading environments, where large orders or technical issues can cause extreme short-term price deviations. Meanwhile, Bitcoin has missed the typical "Santa rally," underperforming compared to traditional assets like the S&P 500 and gold, which hit all-time highs. Gold has surged over 70% this year, while Bitcoin has failed to attract similar safe-haven inflows. Technical factors like falling below the 365-day moving average and significant options expiries have contributed to the stagnation. Persistent selling by long-term holders and ongoing outflows from Bitcoin and Ethereum ETFs—$175 million and $57 million respectively on December 24—have further dampened momentum. Analysts expect limited movement until January due to year-end risk reduction and tax-related selling.

华尔街日报12/25 20:17

Bitcoin Plunged on Christmas Eve, Loses 'Santa Rally', Set for Worst Quarterly Performance in Three Years

华尔街日报12/25 20:17

Bitcoin Plunged Threefold Against Trump's Stablecoin on Binance Exchange

Bitcoin (BTC) briefly plummeted to $24,111 against the USD1 stablecoin on Binance on December 24, a drop of more than two-thirds compared to its market price on other trading pairs. The flash crash occurred over one minute before quickly recovering to around $87,700, aligning with Bitcoin’s global market rate. The incident took place hours after Binance launched a promotional campaign offering 20% rewards for USD1 holders. Following the announcement, USD1’s market cap surged by over $200 million, and trading volume increased sevenfold to more than $2.1 billion. Low liquidity and reduced trading activity during quiet hours may have contributed to the volatility. USD1 is issued by World Liberty Financial (WLF), backed by Donald Trump’s family, and operates similarly to major stablecoins like USDT and USDC. With a market cap nearing $3 billion, it is one of the largest in its category. Although Binance and WLF deny formal ties, USD1 was built using Binance’s codebase, initially launched on BNB Chain, and promoted in Binance fee-free campaigns. Over 55% of USD1 in circulation remains in Binance wallets. The stablecoin was also used in a $2 billion deal involving UAE fund MGX’s acquisition of a stake in Binance in early 2025.

RBK-crypto12/25 09:29

Bitcoin Plunged Threefold Against Trump's Stablecoin on Binance Exchange

RBK-crypto12/25 09:29

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