Firm to Cover $60M in Losses After AI Trade Liquidations

A crypto firm has promised to cover $60 million in user losses after an automated trade triggered a massive wave of liquidations. The incident unfolded during pre market trading in Korea, where a single transaction caused the mark price of an asset to plummet by 19% in an instant.

Despite the sudden crash, the company defended its technology. Representatives stated that their pricing oracle actually worked exactly as designed during the volatile event. Even though the system functioned properly, the rapid price drop caught many traders off guard, prompting the team to step in and reimburse those affected.

This move is a rare gesture in the crypto industry, where liquidation losses are almost always final. Traders are now watching closely to see how the reimbursement process will be handled and what measures will be put in place to prevent similar pre market swings in the future.