Crypto.com unblocks users, reverses glitched LUNA trades that made 30-40x

Crypto.com was one crypto exchange that allowed LUNA trades to continue open during Terra’s death spiral, which saw an unrecoverable price drop of LUNA/stablecoin UST. However, a technical problem in Crypto.com’s mobile app allowed users to make a temporary 30-40x profit from LUNA trades.

After an error in the internal tool detected that Crypto.com was quoting incorrect prices of LUNA, Crypto.com banned users from trading on Friday. Kris Marszalek (CEO of Crypto.com), revealed details about a bug that allowed users to take huge profits just as Crypto Twitter began raising concerns about possible trade reversals.

Many customers were purchasing at incorrect prices. Some also took advantage of the opportunity to profit to the fullest. All trades were reversed. We reversed ALL trades. Some customers saved tons of money and thanked us. Others didn’t abuse it and are blaming us.
Crypto.com (@kris) May 13, 2022

Marszalek stated that users who traded during those 59 minutes are eligible to buy back LUNA tokens at the current market price. This has fallen to $0.0004685 as of this writing. Notable is the fact that LUNA reached its record-breaking market price of almost $120 on April 5.

Marszalek noted:

“The root cause was a combination multiple external factors (tick sizes changes due to Luna’s death spiral, withdrawals, and complete Luna chain stopping), which led to price dislocations that should have been caught by index pricing but were not.

Marszalek stated that all user accounts had been re-enabled after a day of review about the LUNA trade disaster.

Crypto.com has reversed the LUNA transactions but offered $10 worth Cronos (CRO), as a gesture of goodwill to affected investors.

Related: Breaking: Terra Blockchain officially halted after LUNA price collapse

The Terra blockchain validaters officially stopped the network aiming at preventing governance attacks after LUNA’s value collapsed more than 99%.

The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDK Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.
— Terra (UST), Powered by LUNA [@terra_money] May 12, 2022

After implementing a new patch to disallow further delegations, the validators will relaunch their network.

The patch release is out:https://t.co/BZ8t86cuwA Delegations will be disabled once block production resumes. Once 2/3 of the voting powers are online, the network should be live. A regular update will be made. https://t.co/vffpjw7uom
— Terra (UST), Powered by LUNA [@terra_money] May 12, 2022

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