EdgeX has said it will compensate users who suffered realized losses after a sharp EDGE token sell-off triggered liquidations and stop-loss orders on its perpetual futures platform. Summary E
EdgeX has said it will compensate users who suffered realized losses after a sharp EDGE token sell-off triggered liquidations and stop-loss orders on its perpetual futures platform.
SummaryAccording to edgeX’s Wednesday post on X, the platform will offer “goodwill care payments” to eligible users affected during the EDGE market disruption on June 2 between 04:50 and 06:00 UTC+8. The payments apply to users whose EDGE long positions were liquidated or whose stop-loss orders were executed on edgeX Perp V1 and V2 during that window.
The team said eligible users will receive compensation for actual realized losses, while trading fees, funding fees, and unrealized profits will not be covered. EdgeX also set a maximum compensation limit of 100,000 USDC per user.
Under the plan, half of the compensation will be paid in USDC within seven days. The remaining half will be paid in EDGE tokens, with the token amount calculated using the seven-day time-weighted average price, according to the platform’s statement.
EdgeX asked affected users to open a Discord ticket and submit their UID. The support team will then review each case and match the claim against realized order losses recorded on the platform.
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In its incident overview, edgeX said 174 addresses placed heavy EDGE sell orders into a PancakeSwap pool within one minute. The platform said the pool had thin liquidity and low activity at the time, causing the token price to fall by 23% almost immediately.
The price decline then reached edgeX perpetual markets and centralized exchanges, according to the team. Between 5:00 a.m. and 6:00 a.m., combined EDGE sell volume across Binance, OKX, Bybit, and edgeX perps reached $140.66 million, edgeX said.
The platform added that EDGE long positions were heavily crowded before the event, with the long-short ratio at 68.2%. According to edgeX, the sudden price drop forced long liquidations, which in turn triggered more spot selling.
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EdgeX said its team did not sell token allocations and had no role in the incident. The platform also said the protocol continued to operate normally and that user funds were not at risk.
“We investigated ourselves and did not find ourselves guilty even though we control nearly the entire supply” pic.twitter.com/78l9tT01WT
— ZachXBT (@zachxbt) June 2, 2026
As part of its review, edgeX said it contacted centralized exchanges and two institutional liquidity providers. The team reported that OKX, Bybit, Bitget, and Bithumb provided preliminary findings linking the event to thin liquidity conditions rather than large EDGE sales by the team.
At the same time, crypto investigator ZachXBT disputed edgeX’s explanation in posts on X, claiming that edgeX’s supply was controlled by a small group of insiders due to the token’s low float.
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ZachXBT also called on edgeX to disclose its counterparties and market-maker agreements. He questioned whether the platform’s internal review could be trusted without more transparency.
Before publishing its initial analysis, edgeX had described the price action as sudden and irregular. The team said early signs suggested that an external party had tried to manipulate the EDGE market price.
EdgeX has offered a 200,000 USDC bounty for information that identifies the attackers or provides material details leading to their identification. The platform said the event exposed risks tied to thin liquidity and added that it has brought in more market makers and liquidity providers across on-chain and off-chain venues.
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