OKEx delivers BCH futures earlier causing huge losses

Posted 19 November, 2018

The market felt the first results of so-called Bitcoin Cash struggle, with traders reporting large losses on the hardfork.

Seeing falling Bitcoin Cash prices OKEx platform decided to deliver contracts earlier than the schedule and close futures for $135 million.

"Due to the upcoming hard fork, strong volatility is observed in the BCH spot and futures markets. We expect an even greater volatility during the hard fork that may cause large-scale impacts, such as cascade liquidation," reads the statement on the company website.

In addition, OKEx also cited that no one still can say what the hardfork may bring to the market, and it is unclear how other platforms behave themselves. 

The company added:

"Between the hard fork and the delivery data of BCH1116 contract, OKEx may lack time to respond to the market,"

As a result, some large players, in particular, investment funds, are said to suffer huge losses in the crypto market due to earlier positions closure.

It was reported that one trader had stated that he lost $700,000 once OKEx closed futures position. Other trader plans to submit a petition to Hong Kong Securities and Futures Commission regarding this move. As a result, traders stated that they would no longer use this platform as actively as before.

Earlier, the platform made a statement regarding the BCH futures trading. However, the message actually was quite blurred and naturally, the market did not clearly understand the plans of the company.

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