EdgeX said it will provide “goodwill care payments” to users who suffered realized losses during the EDGE market disruption on June 2 between 04:50 and 06:00 UTC+8. The plan covers users whose EDGE long positions were liquidated or whose stop-loss orders were executed on edgeX Perp V1 and V2. The compensation announcement came as the platform faced questions over what caused the sell-off and how the market was structured.
Compensation limited to realized losses with a 100,000 USDC cap
Under the plan, EdgeX will compensate actual realized losses only. Trading fees, funding fees, and unrealized profits are excluded. The platform set a maximum payout of 100,000 USDC per user. Half of the amount will be paid in USDC within seven days, while the other half will be paid in EDGE tokens, with the token amount based on the seven-day time-weighted average price.
Affected users must open a ticket on Discord and submit their UID. EdgeX said its support team will review each case and compare claims against realized order losses recorded on the platform, so the process will depend on case-by-case verification rather than an automatic credit.
174 addresses hit a PancakeSwap pool during thin liquidity
In its incident report, EdgeX said 174 addresses placed heavy EDGE sell orders into a PancakeSwap pool within one minute. The pool was operating with thin liquidity and low activity at the time, and the token price dropped by 23% almost immediately. According to the platform, the move then spread into edgeX perpetual markets and centralized exchanges.
EdgeX said combined EDGE sell volume across Binance, OKX, Bybit, and edgeX perps reached $140.66 million between 5:00 a.m. and 6:00 a.m. The exchange also said EDGE longs had become crowded before the event, with a long-short ratio of 68.2%. Once the price fell sharply, long liquidations were triggered, and that liquidation pressure fed into more spot selling.
Team denies selling tokens as ZachXBT presses for disclosure
EdgeX said the team did not sell its token allocation and had no role in the incident. It also maintained that the protocol continued operating normally and that user funds were not at risk. As part of its review, the platform said it contacted centralized exchanges and two institutional liquidity providers. Preliminary findings from OKX, Bybit, Bitget, and Bithumb, according to EdgeX, pointed to thin liquidity conditions rather than large team sales of EDGE.
Crypto investigator ZachXBT challenged that explanation in posts on X. He argued that EDGE supply was controlled by a small group of insiders because of the token’s low float, and he called on EdgeX to disclose its counterparties and market-maker agreements. His criticism centered on transparency, saying the platform’s internal review was hard to trust without more detail.
200,000 USDC bounty posted as review continues
Before releasing its initial analysis, EdgeX had described the price action as sudden and irregular, and said early signs suggested an external party may have tried to manipulate the EDGE market price. The platform has now offered a 200,000 USDC bounty for information that identifies the attackers or provides material details that could lead to their identification.
EdgeX added that the event exposed the risks tied to thin liquidity. The platform said it has since brought in more market makers and liquidity providers across both on-chain and off-chain venues.