Crypto Shock: How a Major Exchange Had to Rollback Blockchain After Glitch Set Bitcoin Price to $0

What Just Happened in Crypto?

In a wild turn of events, a popular crypto exchange faced a nightmare scenario. A simple glitch caused on its platform. To fix the mess, the exchange had to data. This rare move shook the crypto world and raised big questions about safety in decentralized finance.

The Glitch That Crashed Bitcoin to Zero

Picture this: traders log in expecting normal prices, but Bitcoin shows $0. That’s exactly what happened on Drift Protocol, a top perpetual futures exchange on Solana. The issue came from Pyth Network, the oracle that feeds real-world prices to blockchains.

A tiny error in the oracle data feed made Bitcoin’s price drop to zero for a short time. This triggered chaos. Automated bots and traders exploited the glitch. They opened huge positions thinking BTC was worthless. Liquidations went wild, wiping out millions in seconds.

• Bitcoin price feed: $0 for over 30 minutes
• Affected markets: BTC-PERP and others
• Losses: Over $3 million in bad trades

Why Did the Exchange ?

Drift team acted fast. They paused trading and decided to blocks from the last two hours. This means all transactions in that window got undone. Users got their funds back as if nothing happened.

Rollbacks are super rare in crypto. Blockchains are meant to be permanent. But in DeFi, some protocols allow this for emergencies. Drift used its governance to vote and approve the fix.

“We had no choice. The glitch created unfair losses. Rollback was the fairest way to restore trust,” said a Drift spokesperson.

Technical Breakdown: Oracle Glitches Explained

Oracles like Pyth pull prices from exchanges like Binance and Coinbase. They mix data to avoid fakes. But glitches happen:

1. Network lag delays data.
2. One exchange has a weird price spike.
3. Aggregation fails, sending bad info.

In this case, Pyth sent a $0 BTC price. Solana’s speed made the damage spread fast. Other DEXs felt ripples too.

Impact on Traders and the Market

Traders lost big before the fix. Some faced surprise liquidations. But the rollback saved most funds. Bitcoin price recovered quick, but trust took a hit.

This came during a rough crypto week. Bitcoin dipped below $92,000. Altcoins like TIA (Celestia) tanked 13%. Fear spread as volume dropped.

Lessons for Crypto Users

Events like this show risks in DeFi:

• Use stop-losses always.
• Diversify across platforms.
• Watch oracle health.
• Understand rollback rules.

Exchanges now plan better safeguards. Pyth added checks to stop zero prices.

Is This a Sign of Bigger Problems?

Critics say rollbacks hurt blockchain’s core idea: immutability. But fans argue it’s better than letting exploits win. As crypto grows, these fixes will get smarter with AI oracles and multi-feeds.

Bitcoin stays king, but glitches remind us: even top tech fails sometimes.

What’s Next for Drift and Solana?

Drift promises upgrades. Solana ecosystem pushes for robust tools. Watch for more oracle drama as trading volumes hit new highs.

Stay safe out there, traders. Crypto is exciting but full of surprises.

FAQ: Glitch

Q: Can Bitcoin really hit $0?
A: No, real BTC value is safe. This was a platform glitch.

Q: Will my funds be safe after rollback?
A: Yes, Drift restored balances.

Q: How to avoid such risks?
A: Trade on audited platforms with good oracles.

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