BitMEX Flaunts Innocence as Crypto Players Blame the Exchange for the Massive BTC Price Drop

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BitMEX, a crypto trading giant, is in a hot seat after the price of Bitcoin (BTC) went down real hard from over $9,000 to as low as $3,700. As claimed by crypto players, BitMEX went offline for around 25 minutes on the evening of March 12. They suspected that a foul play had occurred during that time.

In a tweet, BitMEX opened up about a hardware issue that was detected by its team on March 13, between 02:16 and 02:40 UTC. Notably, there had been a frantic trading activity the night before which sparked a problem with BitMEX’s cloud service provider. According to the exchange, they witnessed a record-breaking liquidation figure. The same happened to Bitcoin futures’ aggregated volumes.

Despite being able to manage the issue at 3 AM UTC, crypto enthusiasts were quick to blame the unexpected downtime to the massive blow that hit Bitcoin’s price.  

BitMEX denies the allegation

Bitcoin traders suffered a backdrop of massive losses following BitMEX’s issue. The exchange’s technical reliability is now on the spotlight. Sam Bankman-Fried, the CEO of rival crypto exchange FTX, even tweeted that BitMEX didn’t encounter a hardware issue. Instead, in a series of tweets, he blamed BitMEX’s carelessness and failure to address the current market conditions as one of the main catalysts of the downfall of BTC.

Bankman-Fried also said that following the downtime, Bitcoin immediately bounced upward, emphasizing that it did so without BitMEX’s gigantic sell wall. Due to the rally, he noted that only a few holders would pursue liquidation. He also predicted that if the price would be able to cross the $5,000 mark, then there’s a high possibility that it would continue to move upward.

BitMEX, which suffered a record-breaking drop on its insurance fund, was quick to counter Bankman-Fried’s allegations. An exchange representative referred to the claim as an insane conspiracy theory, further criticizing him for feeding the troll. BitMEX stressed that Bankman-Fried, of all people, should be the one who understands the types of problems that crypto exchanges can encounter. Later on, Bankman-Fried posted an update that he believes BitMEX’s explanation.  

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