On June 3, edgeX published a comprehensive post-mortem report regarding the abnormal price fluctuation of the EDGE token, detailing the full sequence and causes of the flash crash. According to the official account, the attacker carefully selected a low trading activity window and took advantage of PancakeSwap's on-chain liquidity of only about $1.25 million, combining high leverage on perpetual contracts with chain reactions on centralized exchanges to execute a concentrated attack.
How the Crash Unfolded: 174 Addresses Dumped 159k EDGE
At 5:12 a.m., within a single minute, 174 addresses collectively sold approximately 159,000 EDGE tokens, causing the sell volume to surge roughly tenfold compared to the preceding minutes. At that moment, the long-crowded ratio on perpetual contracts stood at 68.2%. The sudden selling pressure directly triggered massive liquidations, and panic quickly spread to spot markets across multiple CEXs. In the following two hours, overall trading volume ballooned to 7–10 times the normal level, reaching an estimated $70 million.
edgeX emphasized that its entire team-held token allocation remained completely unmoved on-chain, verifiable at any time, and this has been supported by preliminary analysis from several CEXs, effectively ruling out any insider selling.
Recovery Measures: On-Chain Bounty and Goodwill Compensation
To restore confidence, edgeX simultaneously unveiled a series of remedial actions. First, a $200,000 USDC on-chain bounty has been created, openly soliciting clues toward the attacker's identity. Additionally, the project is hiring more market makers to deepen both on-chain and over-the-counter liquidity, reducing the risk of similar incidents in the future.
As for affected users, compensation eligibility is clearly defined: any user who held an EDGE long position on edgeX V1 or V2 perpetual contracts between 4:50 a.m. and 6:00 a.m. on June 2 and incurred an actual realized loss due to liquidation or stop-loss triggering qualifies. The compensation cap is set at 100,000 USDC per person, to be distributed in two batches. Fifty percent will be paid in USDC within seven days after verification, while the remaining 50% will be distributed in EDGE tokens priced at the 7-day time-weighted average price, unlocked during the first week of April 2027. The team stressed that this compensation is a voluntary goodwill gesture and does not constitute any admission of liability.