Investing.com - The red-hot cryptocurrency Ethereum flash-crashed in overnight trade on Thursday, but has since recouped nearly all its losses.
Prices plunged to as low as 10 cents from around $317 in a matter of seconds on the U.S.-based GDAX exchange operated by Coinbase, which is being blamed on a "multimillion dollar market sell" order.
Adam White, the vice president of GDAX, posted on the exchange's blog, outlining what took place in late trade on Wednesday. According to White, the multimillion dollar market sell order resulted in a number of orders being filled from $317.81 to $224.48.
As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused Ethereum to trade as low as 10 cents. White also noted that these trades are final and will not be reversed.
Ethereum has since snapped back to around its pre-flash-crash level, trading at around $324 on Thursday morning in New York, down about 3%. The digital currency is up roughly 3,600% so far in 2017.
Meanwhile, Bitcoin struggled to make gains, as investors remained wary of initiating large position amid several warnings from analysts that the digital currency has peaked since hitting $3,000 last week.
The cryptocurrency was at $2,665 in early trade Thursday, down about 2%.