BlockBeats report: On June 3, edgeX released a post-incident report regarding the abnormal price volatility of the EDGE token. The flash crash was triggered by an attacker exploiting a period of low trading activity, combined with the thin liquidity of approximately $1.25 million on PancakeSwap, which led to massive liquidations of highly leveraged perpetual contracts and a cascading reaction across centralized exchanges. Within one minute at 5:12 AM that day, 174 addresses collectively sold approximately 159,000 EDGE tokens—a volume roughly ten times higher than in the preceding minutes—triggering large-scale liquidations of perpetual contracts with 68.2% long positioning. Panic then spread to spot markets across CEXs, with trading volume reaching 7 to 10 times the daily average—approximately $70 million—within two hours. edgeX confirmed that its allocated tokens remained untouched throughout the event, with all transactions verifiable on-chain, and has received preliminary support from multiple CEXs for this analysis.
edgeX has also announced several follow-up measures: establishing a $200,000 USDC on-chain bounty to gather clues identifying the attacker, hiring additional market makers to enhance on-chain and OTC liquidity, and providing goodwill compensation to affected users. Compensation is available to users who incurred actual realized losses on long positions in EDGE perpetual contracts on edgeX V1 and V2 between 4:50 AM and 6:00 AM UTC on June 2, with a maximum of $100,000 USDC per user. The compensation will be issued in two tranches—50% in USDC within seven days of verification, and the remaining 50% in EDGE tokens, valued at the 7-day TWAP, to be unlocked during the first week of April 2027. The team states that this is a voluntary goodwill payment and does not constitute an admission of liability.