Traders walked into a “free Bitcoin” trap on Bithumb and it triggered a 17% flash drop
An input mistake on Bithumb mistakenly credited users with massive amounts of Bitcoin, causing a 17% flash drop before recovery.Summary
South Korea's Bithumb experienced a major operational failure on February 6th when an internal system error intended to distribute small cash rewards instead credited about 695 customers with roughly 2,000 BTC each, totaling about 620,000 BTC on the exchange's ledger. Users who saw the sudden large balances attempted to sell, causing Bitcoin's price on Bithumb to briefly drop by about 17% before rebounding. Bithumb restricted trading and withdrawals within 35 minutes of detection, and regulators later confirmed that 99.7% of the mistakenly credited Bitcoin was recovered. This incident highlighted operational control weaknesses in the crypto industry, contrasting instant settlement capabilities with slow, traditional back-office habits regarding permissions, validation, and reconciliation. The error stemmed from confusing 2,000 won with 2,000 BTC, demonstrating how a single missing guardrail can cause market shock. Policymakers are concerned about such internal ledger discrepancies, termed "ghost coins," especially as crypto integrates with traditional finance, emphasizing the need for better payout tooling, dual approvals, and quarantined credit states to prevent future chaos.
(Source：CryptoSlate)