Cryptocurrency exchange Bitget discovered “abnormal trading activity” on the VOXEL/USDT perpetual futures contract on April 20, between 8:00 to 8:30 UST, and paused accounts that the exchange suspected of market manipulation.
According to an April 20 announcement from the exchange, Bitget will roll back the accounts suspected of market manipulation within 24 hours, clawing back gains made from the trades.
Bitget CEO Gracy Chen told Cointelegraph the trades were between individual market participants and not the platform itself. Chen also said that the losses are not platform-wide and that user funds remain safe.
The crypto exchange also plans to compensate users who suffered losses due to the alleged market manipulation and will announce a compensation plan soon, Chen confirmed to Cointelegraph. The Bitget CEO added:
“For any residual losses, Bitget is fully prepared to offer compensation. Our $300 million protection fund provides more than sufficient backing to support our users in such events, assuring that user assets remain secure.”
The incident has called into question the obligations of exchanges under pressure from trading abnormalities and electronic trading bugs, with some traders comparing the Bitget incident to the Hyperliquid-Jelly exploit in March 2025.
Related: Hyperliquid JELLY ‘exploiter’ could be down $1M, says Arkham
Hyperliquid debacle all over again?
On March 26, a trader “exploited” the price of the Jelly-my-Jelly (JELLY) memecoin on the Hyperliquid exchange by hedging a long position against an equivalent short position.
The price of JELLY pumped by over 400%, triggering a liquidation of the short positions. However, because the position was too large, it was sent through the Hyperliquidity Provider Vault (HLP).
In response to the trading activity, Hyperliquid delisted JELLY perpetual contracts, drawing widespread condemnation from the crypto community.
Bitget CEO Gracy Chen was among the most vocal critics of Hyperliquid, slamming the exchange for delisting Jelly and causing financial losses for users.
“The decision to close the JELLY market and force settlement of positions at a favorable price sets a dangerous precedent. Trust — not capital — is the foundation of any exchange,” Chen wrote in a March 26 X post.
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