An "enormous" losing bet on bitcoin last week left one futures trader unable to cover the loss and other traders on a Hong Kong-based exchange to foot the bill.
The gamble made on OKEx, one of the world's largest cryptocurrency exchanges, was worth about $416 million, according to a company statement and the price of bitcoin futures Friday.
Because of the sheer size of the order and bitcoin's price slump the exchange said it couldn't cover the loss. As a result, it implemented a clawback policy or what it called a "societal risk management mechanism." Users with a net profit will have a portion of their earnings taken back to cover the difference between the liquidated price and the settled price.
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