A sudden spike in VOXEL perpetual futures trading on Bitget led to market irregularities; the exchange is rolling back affected trades and preparing a user compensation plan.
Background
- On April 20, Bitget, a centralized crypto exchange, witnessed an unexpected trading surge in the perpetual futures market for VOXEL, a relatively obscure token tied to the Polygon-based game Voxie Tactics.
- Despite VOXEL ranking just 723rd by market cap, its trading volume briefly exceeded Bitcoin’s, an anomaly that prompted immediate scrutiny.
- Traders quickly noticed the asset’s price repeatedly spiking and crashing every few seconds, leading to a frenzy of high-frequency flipping between long and short positions.
- The volatility allowed some users to reportedly turn under $100 into six-figure profits within minutes.
- Investigations revealed that the source of the irregularity was a bug in Bitget’s market-making bot, which allowed savvy traders to exploit the price action.
- In response, Bitget froze the affected market, flagged accounts suspected of manipulation, and triggered its internal risk controls. The exchange has since confirmed a full trade rollback and plans to compensate impacted users.
Why Should You Pay Attention?
- This incident highlights the potential vulnerabilities of automated market-making systems in centralized exchanges.
- It also raises questions about user protection when technical glitches result in massive, unintended profit windfalls or losses.
- If you trade perpetual futures, this shows how technical failures can distort markets and compromise capital.
- Bitget’s decision to reverse trades sets a precedent for how exchanges may handle similar exploits in the future.
Who Said What?
- A user on X, going by the handle @0xDamix, was among the first to detail the exploit:
“A group of people drained over $100M from Bitget exchange… They found a tiny bug in one of the tokens — and abused it to hell. The token was pumping 10% — then dumping — every 3 seconds. Those who kept flipping positions earned millions.”
- Another user claimed to have turned a sub-$100 investment into a six-figure gain before trades were frozen.
- Bitget responded with an official statement:
“Upon investigation, certain accounts were found to have potentially engaged in market manipulation, triggering our risk control system… Bitget will initiate a rollback of irregular trades within 24 hours, take necessary measures, and lift restrictions accordingly.”
- Bitget Added:
“Additionally, for users who traded the VOXELUSDT contract between 8:00 and 8:30 (UTC) on April 20 and incurred losses during this period, a compensation plan will be offered.”
Zooming Out
- The Bitget VOXEL glitch comes at a time when trust in centralized exchanges is constantly tested.
- While swift action and compensation are commendable, the situation exposes systemic risks tied to automated bots and low-liquidity tokens.
- This case echoes broader market concerns about algorithmic integrity and real-time monitoring. It also comes on the heels of the recent Hyperliquid HYPE vault incident, where a whale absorbed a $4 million loss, prompting speculation about market manipulation.
