June 24, 2017
by Samuel Haig
Global Digital Asset Exchange (GDAX) Vice President, Adam White, issued a follow-up statement regarding the multi-million dollar market sell order induced flash crash that momentarily drove prices as low as $0.10 USD after the order triggered an avalanche of stop order executions and margin position liquidations. The press release states that customers who experienced stop loss order executions or margin calls as a result of the dramatic price dive will be reimbursed.
Many Traders Suffered Serious Losses
GDAX saw a dramatic flash crash on its ETH/USD market this past Wednesday. GDAX blamed the flash crash on a multi-million dollar market sell order that instantaneously wiped 29.4% of the ETH value from the market, in turn triggering a flood of stop order executions and margin liquidations.
Many traders suffered serious losses, quickly taking to the internet to express their anger. A Google Document began to circulate attempting to rally angry investors to mount a class-action lawsuit. Although no violation was made against Coinbase’s terms of service and legal action would be unlikely to be successful, GDAX and Coinbase’s public perception seemed to be hanging in the balance – just weeks after the company announced that it will be seeking a $1 billion USD valuation.
On June 24 GDAX released their second official update regarding the June 21st flash-crash. The statement begins by iterating that “we are confident that all trades this week were executed properly, however, some customers did not receive the quality of service we strive to provide and we want to do better.”