edgeX releases post-incident report on EDGE flash crash: the team did not participate in the sell-off and will provide goodwill compensation

BlockBeats News, June 3rd, edgeX published a post-incident report regarding the abnormal price fluctuation of the EDGE token. The flash crash was caused by attackers exploiting a low-activity trading window, combined with thin liquidity on PancakeSwap with only about 1.25 million USD in on-chain liquidity, high leverage in perpetual contracts, and chain reactions on centralized exchanges (CEXs). During a one-minute window at 5:12 a.m. that day, 174 addresses collectively sold approximately 159k EDGE tokens, with selling volume spiking about 10 times compared to the previous few minutes, triggering a large-scale liquidation of 68.2% of long positions in perpetual contracts crowded together. Panic then spread to spot trading on various CEXs, with trading volume reaching about 70 million USD, 7 to 10 times the usual within two hours. edgeX officials stated that their token holdings have not been moved at any point, are fully traceable on-chain, and have received preliminary analysis support from multiple CEXs.

edgeX also announced several remedial measures: establishing an on-chain bounty of 200k USDC to gather clues about the attacker’s identity, hiring additional market makers to deepen on-chain and off-chain liquidity, and providing goodwill compensation to affected users. The compensation targets users who experienced actual realized losses due to forced liquidation or stop-loss triggers on edgeX V1 and V2 perpetual contracts between 4:50 a.m. and 6:00 a.m. on June 2nd, with each person limited to 100k USDC. Compensation will be distributed in two batches—50% in USDC after verification within 7 days, and the remaining 50% in EDGE tokens based on a 7-day TWAP (Time-Weighted Average Price) at the beginning of April 2027, unlocked after the first week. The team stated that this is a voluntary goodwill payment and does not constitute any liability acknowledgment.