EdgeX Publishes Post-EDGE Flash Crash Report: Team Did Not Partake in Dump, Will Distribute Goodwill Compensation

BlockBeats News, June 3rd, edgeX released a post-incident report on the unusual price fluctuation of the EDGE token. This flash crash was caused by an attacker exploiting a low-liquidity trading window, combining a thin window of only about $1.25 million in PancakeSwap on-chain liquidity, triggering perpetual contract high leverage, and a chain reaction across CEXs. In a one-minute window at 5:12 AM on the same day, 174 addresses dumped approximately 159,000 EDGE tokens, with the selling volume spiking about 10 times compared to the previous minutes, causing a large-scale liquidation of 68.2% of long positions in perpetual contracts. Subsequently, panic spread to various CEX spot markets, with trading volumes surging to 7 to 10 times the usual daily volume, reaching around $70 million in two hours. The edgeX team stated that their token allocation remained unmoved and transparent on-chain and has received preliminary analysis support from several CEXs.

edgeX also announced several follow-up measures: setting up a $200,000 USDC on-chain bounty to collect clues about the attacker's identity, hiring more market makers to enhance on-chain and off-chain liquidity, and distributing goodwill compensation to affected users. The compensation is for users who suffered actual realized losses due to liquidation or stop-loss triggers on their EDGE long positions on edgeX V1 and V2 perpetual contracts between 4:50 AM and 6:00 AM on June 2nd. Each user is eligible for up to $100,000 USDC, distributed in two batches — 50% in USDC within 7 days after verification, and the remaining 50% in EDGE tokens unlocked in the first week of April 2027, based on a 7-day TWAP price. The team stated that this is a voluntary goodwill payment and does not constitute any liability acknowledgment.