Prices have since stabilized, and the OKX team is working on a compensation plan for affected users. by Bessie Liu /. January 23, 2024 04:28 pm. photo_gonzo/Shutterstock modified by Blockworks. 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.. Don’t miss the next big story – join our free daily newsletter.. Tags. Newsletter. Blockworks Daily. Upcoming Events. Digital Asset Summit 2024. Hilton Metropole | 225 Edgware Rd, London. Mon – Wed, March 18 – 20, 2024. Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.. buy ticketslearn more. Permissionless III. Salt Lake City, UT. WED – FRI, OCTOBER 9 – 11, 2024. Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains . . learn more. recent research. Research. In this report, each analyst on the Blockworks Research team lays out their highest conviction thesis for 2024.. by Sam Martin. more from news. Select a tab. Ethereum’s Nevermind client software saw a bug that pulled validators offline. by Bessie Liu /. January 23, 2024. Crypto needs to attract more users, but a sizeable target already lurks in plain sight. by Brandon Truong&Jon Russell /. January 23, 2024. GBTC’s total outflows on Monday came in at around $640 million, likely contributing to bitcoin’s continued decline. by Casey Wagner /. January 23, 2024. FinCEN’s proposed rule could stigmatize legitimate crypto activity and drive illicit transactions abroad, Blockchain Association says. by Ben Strack /. January 23, 2024. Abra held around $13.6 million worth of cryptocurrencies for 12,000 customers, according to the settlement. by Katherine Ross /. January 23, 2024. Oracle Extractable Value (OEV) is a new category of MEV targeting the likes of Aave. by Macauley Peterson /. January 23, 2024