BitMEX responds to a $500 million explosion: the number of affected positions is low and will be actively paid

The price of bitcoin began to soar to around $5,000 on Tuesday. On the other hand, BitMEX investors holding speculative and leveraged short positions in the XBTU19 futures contract broke the news that their positions were automatically closed. Investors successively pushed out the uneasiness of the large fluctuations in the cryptocurrency. Twitter blogger Edward Morra posted, “Only on BitMEX, a short position worth about $500 million was liquidated.” Other community members expressed concern about the matter and asked why the insurance fund was not activated. After the incident, BitMEX, a cryptocurrency futures exchange, quickly responded that the number of positions affected was low. Due to the large fluctuations in the price of XBTU19 and ETHM19, the number of open positions that were automatically closed was no more than 200. Also, BitMEX stated that it will compensate for the maximum potential profit that the injured user received during the automatic closing.