Crypto-exchange OKEx explained that it had forced the sale of an “unusually large” position for 4 168 515 bitcoins contracts, placed by the client on July 31 after the user refused to lower the position or cancel.
The platform reported that it subsequently froze the user’s funds and initiated the forced sale of assets, in order to avoid further build-up of the position.
Each futures had a nominal price of $100, and the total amount was more than $400 million.
According to the representative of the crypto-exchange, taking into account the insurance coverage, the losses for investors are about 1200 BTC. OKEx also reported that it allocated 2500 bitcoins with a total cost of about 18 million dollars in the insurance fund to reduce losses of traders.