On May 16, in efforts to satisfy the requests of traders, WOO X resumed the trading of LUNA/USDT, a trading pair that had been delisted for failing to meet liquidity standards in the wake of the UST de-pegging incident. The WOO X order book encountered an error at around 10:30 AM UTC, about thirty minutes after trading had resumed. For a period of time, the order book experienced 10 dislocations which caused the market price of LUNA to drop up to 90% compared to other exchanges.
During this time, a small group of traders (<30) was affected by the dislocation, causing both unexpected gains and losses on their accounts. Upon discovery of the error, the WOO X team froze the affected accounts while they investigated the issue.
In events like this, WOO X always seeks to protect the interests of users by ensuring that system-related errors will not result in erroneous losses. As such, the WOO X team executed a rollback, reversing buy and sell orders executed outside of the normal market range during that time period. Affected users were notified via email about the incident.
Due to the nature of this incident, users that had benefited from the price dislocation were awarded a bug bounty worth 10% of their positive accumulated PnL.
WOO X has executed a rollback one other time in its history, in May of 2021 when WOO suffered a series of cascading liquidations. In this instance, WOO X also implemented similar measures to ensure users’ trading activity was executed in a normal market range.
The WOO X team has already identified the source of the issue and put in new procedures to eliminate the possibility of future occurrences. We appreciate the patience in dealing with this issue!