Gate Exchange Trading Error Leaves One Account $1.5 Million in Debt

Crypto exchange Gate suffered a trading error on Wednesday that left one account $1.5 million in debt.

The mistake occurred when Gate mistakenly applied a stock dividend to the wrong contract, BENUSDT, which is a perpetual futures contract tied to the asset's price.

According to screenshots shared by traders, BENUSDT was trading at around $0.000585, not its actual stock price of $33 per share. A $0.33 charge against it would be roughly 564 times the contract's value.

Leveraged traders who bet on a fall in the asset's price (shorts) saw their balances drained by the dividend charge, triggering liquidation and forcing Gate to close other positions in their accounts as well.