Earlier this week, traders on the Kraken exchange faced a glitch when the price of the cryptocurrency Ethereum fell from $1,700 to $700, causing a massive liquidation of open orders
Users suspected that there was a failure on the stock exchange. However, after the investigations, the representatives of the exchange reported that the engine of the exchange correctly processed the warrants.
According to the head of the cryptocurrency exchange Kraken, the fall in the price of ETH was due to increased pressure on sellers. Therefore, everyone who traded with leverage lost. But it wasn't a technical problem.
Jesse Powell advised to refrain from opening orders with leverage to those who do not understand the essence of trading and do not see the associated risk.
Despite the absence of guilt, the Kraken will pay out-of-pocket compensation to the victims of %5 to %50 of the losses incurred. The company took this step to save the customer base.