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At precisely 09:07 am UTC on January 23, the price of OKB dropped from $50.69 to $48.36, leading to an automatic liquidation of multiple margined positions. This sudden price movement caused high volatility, with OKB reaching a low of $25.1 USDT within a brief three-minute period before the market stabilized.
OKX users, particularly those involved in flexible loans, margin trading, and multicurrency trading products, bore the brunt of the abnormal liquidations, incurring losses due to the swift market movements. The situation prompted OKX to issue an apology to affected users, acknowledging the unusual nature of the event and pledging compensation.
OKX takes swift action, promises compensation
The OKX team has promptly announced their commitment to developing a detailed compensation plan within the next 72 hours. The compensation plan aims to address the losses incurred by users during the abnormal liquidations, demonstrating the platform’s dedication to mitigating the impact on its user base.
Today, OKB experienced unexpected volatility. The market has quickly stabilized, and we're actively developing a compensation plan, set to be finalized within 72 hours.
— OKX (@okx) January 23, 2024
We apologize for any inconvenience caused and are committed to enhancing our risk management protocols.… pic.twitter.com/GxJ2M0dOS3
Furthermore, OKX reassured its community that it is actively investigating the root cause of the flash crash. The exchange mentioned that the market has stabilized after the incident, but the lack of information on the specific cause has left users speculating about the stability of the OKB token and the overall robustness of the OKX platform.
The exchange also pledged to enhance its risk management protocols, margin position tier rules, and liquidation mechanisms to prevent any future abnormal liquidations. This commitment underscores OKX’s proactive approach to continuously improving its systems for the benefit of its users and to ensure the overall stability of the platform.
OKB price at press time
At press time, the price of the OKB token had recovered almost half of the lost value to trade at about $45.9, which is about halfway between $50.69 and $48.36.
The sudden plunge has certainly raised concerns within the crypto community some of whom have lost dearly following the drop. However, OKX’s swift response, commitment to compensation, and proactive measures to improve risk management protocols signal a determined effort to address the aftermath of the flash crash and prevent such incidents in the future.
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