Bitget Rolls Back VOXEL Trades After Market Manipulation

Bitget Flags Suspicious VOXEL Trades, Promises Compensation Plan

Bitget, one of the fastest-growing global cryptocurrency exchanges, has taken swift action after detecting “abnormal trading activity” on the VOXEL/USDT perpetual futures contract. The activity, which occurred between 8:00 and 8:30 UTC on April 20, led to a massive price spike and raised red flags internally.

The exchange has since paused accounts suspected of manipulating the market and announced plans to roll back those trades to ensure fairness across its platform.

• “We’ve identified the issue and are rolling back impacted accounts within 24 hours. All manipulative profits will be clawed back,” said Gracy Chen, CEO of Bitget, in an April 20 statement.

According to the exchange, user assets remain safe, and the trading irregularities were between individual users not a system-wide platform failure.

What Happened With VOXEL?

VOXEL, the native token of Voxie Tactics, saw an explosive 138% price jump in a matter of minutes. That kind of surge, especially in the derivatives market, is typically a red flag for manipulation.

The incident is eerily similar to the Hyperliquid-JELLY fiasco from March, where an exploit led to wild price swings and forced liquidations. In that case, a trader hedged long and short positions, causing the JELLY memecoin to soar by over 400%. Hyperliquid eventually delisted the token’s perpetual contracts, a move that sparked heavy backlash from the crypto community.

Interestingly, Bitget’s Gracy Chen had sharply criticized Hyperliquid back then, stating that delisting and forced settlements set “a dangerous precedent” in crypto.

Now, the tables have turned, and Bitget finds itself in the same hot seat.

Bitget’s Response: Rolling Back, Not Delisting

Rather than delisting VOXEL or freezing the contract permanently, Bitget is taking a more measured approach. The company has:

• Rolled back gains made through suspected market manipulation
• Paused accounts involved in the trades pending review
• Promised full compensation for users impacted by residual losses
• Reaffirmed user protection with a $300 million protection fund
• “For any residual losses, Bitget is fully prepared to offer compensation,” added Chen. “We want to assure our users that their funds are secure.”

This move reinforces Bitget’s commitment to market integrity, transparency, and protecting its user base, something especially important in the highly volatile crypto derivatives market.

Could This Be Another Jelly-Like Scenario?

Crypto enthusiasts couldn’t help but draw comparisons between Bitget's VOXEL scenario and the infamous Hyperliquid-JELLY case. In both cases:

• Perpetual futures contracts were manipulated
• Price surges triggered unexpected liquidations
• Platforms had to intervene to maintain order
• Traders questioned the reliability of DeFi-aligned exchanges

While Bitget has avoided a full delisting, its rollback plan places it in better light compared to the fallout faced by Hyperliquid, which lost community trust after delisting JELLY abruptly.

Final Thoughts

The crypto world is fast-moving, but episodes like these show that transparency and user trust are still the most critical pillars of any exchange.

Bitget’s proactive stance rolling back manipulative trades, securing user funds, and preparing compensation might just help it avoid the kind of backlash that Hyperliquid experienced.

Still, this event highlights a broader concern: Are exchanges truly ready to handle flash manipulation in futures markets? And more importantly, can they respond without eroding user confidence?

As the crypto space evolves, robust risk management, clear communication, and fair compensation mechanisms will make all the difference.

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