Company behind AI trade that caused $60 million crypto liquidations to cover all losses
Trade.xyz has committed to covering $60 million in losses following a crypto liquidation event caused by an automated trade triggered by an oracle system. The company is now re-evaluating its reliance on external data sources for price formation in its perpetual futures contracts.
The mark price, the reference figure used to calculate profits, losses and liquidations, fell from about $1,128 to $917 at 23:01 UTC on July 27, according to the company. The print came from an executed trade relayed by multiple independent data providers, and the data point feeding the contract was tracking what Trade.xyz called the primary Korean pre-market venue.
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