The decentralized perpetual platform edgeX says it will refund users who suffered losses due to the sharp volatility of the EDGE Token during Tuesday's incident. 
According to edgeX, the “goodwill support” program applies to users who suffered losses due to liquidation of Longing EDGE positions or the triggering of stop-loss orders on edgeX Perp V1 and V2 between 03:50 and 05:00 AM on June 2nd (Vietnam time). edgeX states they will compensate for the “actual loss,” but excluding transaction fees, funding fees, or uncapitalized profits. The maximum support amount is 100,000 USDC per person; 50% will be paid in USDC within 7 days, and the remaining 50% will be paid in EDGE Token , calculated based on the Medium price of the Token over the past 7 days. Affected users are required to join the project's Discord server, open a ticket, and submit their UID so the team can verify the corresponding losing orders.
Explaining the events, edgeX stated that during a period of low liquidation and relatively quiet trading, approximately 174 addresses simultaneously pushed sell orders for EDGE into the pool on PancakeSwap within just one minute. This massive sell-off caused the price of EDGE to drop by about 23%, subsequently spreading to the perps market on edgeX and other centralized exchanges.
edgeX stated that the chain reaction continued to amplify within an hour, with total selling pressure across Binance, OKX, Bybit , and edgeX's perps market reaching $140.66 million. The situation worsened due to the excessive concentration of Longing positions ( Longing/ Short ratio around 68.2%), triggering a wave of Longing order liquidations and adding further selling pressure to the spot market.
As panic set in, spot activity on CEXs and even on edgeX surged, with the project recording volume at times reaching approximately $70 million – up to 10 times the normal level. EDGE at one point dropped 71%, from over $1.40 to a Dip of around $0.40; by Wednesday the Token had recovered to around $0.63.
edgeX has repeatedly asserted that the team did not sell its allocation and was not involved in the incident. The project also stated that the protocol remains operational and poses no risk to users' funds. During the investigation, edgeX requested additional data from centralized exchanges and two institutional LP ; and stated that initial analyses from OKX, Bybit, Bitget , and Bithumb all pointed to the possibility that the incident was primarily triggered by thin liquidation conditions, rather than a large-scale Token Dump by the team.
The article "EdgeX Refunds and Offers a $200,000 USDC Reward After 71% Token Crash" first appeared on CoinMoi .
