On Nov. 25, at 2:27AM UTC and 2:32AM UTC, the Bybit ETHUSD perpetual contract experienced two major wicks. The Bybit team conducted a thorough investigation into the cause, and would now like to report the following:
Multiple large-volume sell orders, totaling more than $32 million, happened at about the same time, which brought the price down from its 590+ height. As Bybit’s market price headed downwards, market-price-based stop loss orders were triggered along the way, causing a chain reaction that cascaded down until support came in at 486.80 and 500, respectively. No client position was liquidated as a result of this, as Bybit employs a dual-price mechanism that reflects the real-time spot price on major exchanges and shields client positions from market price fluctuations. However, some clients’ conditional and limit orders were triggered at off-market prices, especially stop loss orders.
Despite the fact that this incident was not resulted from a technical issue attributable to Bybit, we will be reaching out to the impacted clients and compensate them for the price difference between the fair market price at the time of this incident and the price of the executed orders. On top of this, Bybit will be releasing a price protection mechanism soon to defend against such abnormal wicks. Please stay tuned to our product updates for more details.
Bybit is committed to creating a fair, transparent and efficient trading environment. We constantly listen, care and improve to provide our users with the industry’s safest, fastest, fairest and most transparent trading experience. Please do not hesitate to reach out to our 24/7 multi-language customer support should you have further queries.