Bybit's Ethereum futures contract price dropped by 20% within 15 minutes, reaching a low of $486.

At 10:15 a.m. this morning, a serious abnormality occurred on the Chinese cryptocurrency derivatives exchange Bybit, with the price of Ether futures contracts plummeting 20% within 15 minutes.

Drop Nearly 20% in 15 Minutes

One of the worst nightmares for contract traders is when the platform's marked price suddenly plunges. This morning, the cryptocurrency market showed signs of weakness, with Bitcoin dropping below $19,000 after surpassing $19,400 last night, and Ethereum falling from $620 to $580. For many, this pullback may still be within an acceptable range. However, can your position withstand a 20% drop in Ethereum within 15 minutes?

At 10:15 am this morning (Taiwan time), the price of Ethereum perpetual contracts on the Chinese cryptocurrency derivatives exchange Bybit plummeted from $604 to $486 within 15 minutes, a drop of about 20%. Although actual data is still pending, such a significant decline in a short period is likely to result in losses for many traders.

According to CMC data, Bybit's derivatives trading volume ranks second only to Binance and Huobi, making it one of the mainstream futures contract exchanges in the market. Currently, the official explanation for this incident is whether it was due to a liquidation engine failure or customer operational errors.

Platform Promises to Compensate User Losses

However, it appears that this incident was not caused by malicious price manipulation by the platform. Bybit CEO Ben Zhou responded to this event on Twitter earlier. He stated that there were two issues with Bybit's ETH contract products and advised all users affected by the disconnected prices to proactively contact customer service for verification and follow-up compensation.

Bybit had two major wicks on ETH, if any clients stop loss, conditional or limit order was triggered and executed on the off market price, please contact our support and we will examine and reimburse. (Please be patient on our live support as they are quite overloaded now) pic.twitter.com/aMEuZu3im5

— Ben Zhou (@benbybit) November 25, 2020

As for whether users who obtained low positions due to pending orders can retain their positions, the official response is still pending. In addition, Ben Zhou also promised that the platform will release a comprehensive report on this incident in the coming days.