After a user made an “enormous” gamble on bitcoin futures, and lost, Hong Kong-based cryptocurrency exchange OKEx said it is having to claw back millions from counterparties. The exchange explained on Friday that it force-liquidated an “unusually large” long position of 4,168,515 bitcoin futures contracts held by a client on July 31 after the user declined the exchange’s request to lower the position. Each futures contract has a notional value of $100, according to OKEx, so the total value of the position was over $400 million. The platform said it subsequently froze the user’s account and initiated a forced liquidation. An OKEx spokesperson told CoinDesk that, even with the force liquidation, it has now had to trigger its societal loss risk management mechanism due to “the sheer size of the order.” After its insurance cover is taken into account, the loss to investors is around 1,200 BTC (around $8,800,000 at press
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