Marginal creditors of the Poloniex exchange lost $ 14 million due to the collapse of the CLAM

The American cryptocurrency exchange Poloniex reported that financed margin trading users lost 1800 BTC (about $ 14 million at the current exchange rate) due to a sharp drop in the CLAM rate and extremely low liquidity of this coin.

Today, we recognize the lenses in the BTC margin lending pool. BTC loans as of 14:00 UTC today has been reduced by 16.202%. This impacted 0.4% of Polo users. Details: https://t.co/s7Ql6j2sw3

– Poloniex Exchange (@Poloniex) 6 June 2019 p.

According to representatives of the exchange, on May 26, the so-called Flash crash of the CLAM asset occurred (228th place in terms of market capitalization), as a result of which the coin fell in price by 77% in less than an hour.

Data: CoinMarketCap

The collapse of the course caused a wave of liquidations designed to reduce losses and repay loans to lenders. Poloniex claims that 0.4% of the total number of users of the exchange suffered, and the volume of the marginal lending pool decreased by 16.202%.

“The collapse rate and lack of liquidity in the CLAM market caused the automatic liquidation of marginal positions for this coin ,” the Poloniex blog said . – In addition, a significant part of the loan was secured by CLAM. Therefore, the positions of borrowers and their collateral have lost most of their value at the same time. ”

Also, the company said that as long as borrowers do not repay the specified cost, their accounts will be frozen. The very same stock exchange promised creditors to return their funds as soon as she manages to pay damages.

“The affected creditors will see a reduction in their balance sheets the next time they sign in to the account ,” added Poloniex representatives, noting that they are trying to contact users who have not fulfilled their loan obligations.

To avoid such losses in the future, the exchange will remove the assets of BTS, CLAM, FCT and MAID from the marginal section. In addition, additional measures will be introduced to monitor risks when trading with borrowed funds, as well as measures to prevent strong price slippage and excessive concentration of marginal positions.

Earlier, Poloniex announced the introduction of special monitoring tools to track insider trading and Pump & Dump schemes.

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