- Bitget will reverse trades after abnormal VOXEL activity caused sudden price swings on its futures platform.
- VOXEL trading volume briefly passed Bitcoin which triggered Bitget to launch an internal investigation.
- Bitget found possible market manipulation and will compensate users affected by the irregular VOXEL trades.
Crypto exchange Bitget announced it will reverse trades after abnormal market activity involving VOXEL futures raised internal alarms.
The issue emerged early Sunday during a surge in VOXEL trading on Bitget’s perpetual futures platform. VOXEL, tied to the blockchain game Voxie Tactics, saw its volume spike. Briefly, its trading activity surpassed Bitcoin’s, which is unusual for a low-cap digital asset.
Over the past week, the token gained more than 300%. This sharp rise prompted Bitget to launch an internal investigation. The platform flagged the movement as inconsistent with VOXEL’s normal trading behavior.
Investigation Reveals Possible Manipulation
Bitget’s investigation found that certain user accounts may have manipulated VOXEL’s futures market. The sudden price swings triggered the platform’s risk controls. These accounts reportedly executed trades that caused rapid and extreme price changes.
Following the findings, Bitget took immediate action. It suspended deposits, trading, and withdrawals for the involved accounts. It also stated that user funds remain secure and unaffected outside the flagged activity.
Reversals and Compensation to Follow
Bitget confirmed it will unwind all trades linked to the abnormal activity. Affected users will receive compensation. However, the company did not disclose how much was lost or the exact number of affected accounts. Bitget also has not provided a timeline for completing the process.
The exchange’s team continues to work on restoring order to the VOXEL futures market. Trading remains suspended for flagged accounts while the review proceeds. Normal trading continues for other users.
Low Liquidity Tokens Pose Risk
VOXEL is not widely traded compared to major digital assets. Despite its growing popularity through Voxie Tactics, its liquidity remains low. The sudden rise in volume caught the attention of both traders and platform monitors.
The incident highlights risks involved in trading low-cap tokens with leveraged instruments. It also puts pressure on exchanges to monitor market behavior and protect user interests.
Increased Oversight Needed in Futures Market
This case emphasizes the challenges exchanges face when listing low-liquidity assets. While new tokens attract attention, they also become targets for manipulation. Bitget’s actions show the importance of swift intervention when irregular activity occurs.
By reversing trades and offering compensation, Bitget aims to restore user trust. The platform continues monitoring its systems to prevent further disruptions.
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