OKEx futures traders will have to absorb losses of 1,200 BTC, after the force-liquidation of a huge position in futures contracts. The exchange intervened at the last moment, injecting 2,500 BTC into its insurance fund, but this could only partially limit the damage.
The story started on Tuesday, when a client, identified by OKEx only by his or her ID number, initiated an unusually large long position order of more than 4.1 million contracts, worth $100 each. The Hong Kong-based exchange says the move triggered its risk management alert system, so it contacted the client, asking him “several times to partially close the positions to reduce the overall market risks”.
“However, the client refused to cooperate, which lead to our decision of freezing the client’s account to prevent further positions increasing,” OKEx explained in a statement on Friday. “Shortly after this preemptive action...
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