Crypto.com unblocks users, reverses errant LUNA trades that made 30-40x

Crypto.com was one of the few crypto exchanges to keep LUNA trades open when Terra’s death spiral saw an irreparable price drop of LUNA and stablecoin UST. However, a technical glitch in Crypto.com’s mobile application allowed users to temporarily walk away with a 30x to 40x profit on LUNA trades.

On Friday, Crypto.com abruptly banned users from trading after an internal tool found that the system was mispricing LUNA due to an error. Just as Crypto Twitter started raising concerns about trade reversals in the stock market, Crypto.com CEO Kris Marszalek revealed details of a glitch that allowed users to rake in massive profits.

According to Marszalek, users who traded “during that 59 minutes” are eligible for a buyback option at the market price of LUNA token, which has fallen to $0.0004685 at the time of writing. It’s important to note that LUNA will be released on April 5th.

Marszalek remarked:

“The main cause was a combination of multiple external factors (tick size changes due to Luna’s death spiral, withdrawals and the halting of the entire Luna chain) that combined resulted in price shifts that should normally be captured by index prices, but weren’t. “

After a day’s recap of the LUNA trading debacle, Marszalek shared that “all user accounts have been reactivated.”

While Crypto.com reversed the LUNA transactions, the company offered its $10 in-house token Cronos (CRO) as a goodwill gesture to affected investors.

Related: Breaking: The Terra blockchain has been officially halted after the LUNA price collapse

When LUNA’s price plummeted more than 99%, validators for the Terra blockchain officially halted the network to prevent governance attacks.

Validators are expected to restart the network only after they implement a new patch to disable further delegations.