OKX pledges to compensate users after exchange token flash crash

Prices have since stabilized, and the OKX team is working on a compensation plan for affected users

article-image

photo_gonzo/Shutterstock modified by Blockworks

share

Crypto exchange OKX saw the price of its token OKB flash crash from around $50.69 to as low as $25.10 on Tuesday.  

The token price has since recovered and is currently trading at $47.27, according to data from CoinGecko.

OKX said in a statement that the high volatility was the result of the automatic liquidation of several margined positions after the token price dropped from 50.69 USDT to 48.36 USDT.

Flash crashes are not uncommon in the cryptocurrency space or traditional finance, often caused by accidental sell orders. 

In June last year, a Citigroup trader in London accidentally made a “fat finger error” by adding an extra zero to a trade, leading to an estimated $325 billion being wiped from the market at one point in time, the Guardian reported

Bitcoin, too, has suffered from its own fair share of flash crashes over the years. Earlier this month, following the publication of an ETF-focused report from Matrixport, the price of BTC fell sharply before recovering. 

OKX said it is looking into additional management controls and liquidation mechanisms to prevent future abnormalities.

In the meantime, however, OKX said it is working on a compensation plan, which will be released in the next three days for users affected by the liquidations.

“We understand this situation is unusual and apologize to impacted users. Compensation will be provided to users who experienced losses as a result of abnormal liquidations, including users of flexible loan, margin trading and multicurrency trading products,” The company wrote.

OKX declined further comment when reached by Blockworks.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers

article-image

If the president breaks the Fed, he’ll own the budget problems

article-image

Combining Franklin Templeton’s tokenization expertise with Binance’s trading infrastructure could speed crypto adoption, companies say

article-image

The firm’s upcoming filing comes as competition heats up over the USDH stablecoin