On 23 Sept 2019 UTC 20:53:19 UTC, Bybit received an incorrect ETHUSD pricing data feed from one of the indexed exchanges, Kraken, with ETHUSD at 179.88 USD, which resulted in a deviated Mark Price to $192.64 and a wick on chart which lasted for around 3 minutes.
The below screenshot showing that we got the 1st wrong price feed with time stamp:
The 2nd wrong price feed with time stamp:
Although we have upgraded our Mark Price system recently to eliminate price anomalies ( https://blog.bybit.com/technical-updates/bybits-new-spot-price-index-and-mark-price-system/), however unfortunately at the time of the incidence, Bitstamp wasn’t feeding any prices. This meant that we only had Coinbase and Kraken giving us ETHUSD price feeds, but Kraken had the wrong price. As soon as Bitstamp’s price feed came back, we were able to eliminate Kraken’s wrong price, as seen in the below screenshot:
This incidence caused 197 users’ ETHUSD positions to be liquidated at the deviated mark price as well as close to 200 clients stop orders being triggered at the deviated price or had excessive slippage on wick execution. After discussing internally, we believed that although the issues were caused by wrong price feeds of an external indexed exchange, Bybit should have had better procedures to eliminate the price anomalies and protect our clients from being exposed to the abnormal mark price. Therefore we have decided to reimburse all the liquidated clients’ position losses back to the actual mark price at the time without price anomalies which was $205.8, along with all of the fees that had occurred. Clients will be able to restore their positions without any extra cost if they choose to do so. For the stop order clients, we will investigate case by case and offer reimbursement based on the slippage and the difference of the trigger price. This process might take up to 7 business days.
We sincerely apologize for any inconvenience caused to all the traders and we will work on our Mark Price system this week to prevent similar cases from happening.
At Bybit, we always put our clients first and value your feedback. If you were affected by this issue and have more questions, please contact online customer support at https://bit.ly/2QNjZ8i or email to firstname.lastname@example.org. Thank you.
Below is a list of affected liquidated UID, The compensation according to adjusted Mark Price will be applied within 48 hrs.