Citing MarsBit, a Paradex user, Systemic Strategies, reported a $218,922 loss after their account was locked and positions liquidated following a trade in options with extremely low implied volatility. The user had previously attempted to report the pricing issue through a bug bounty program and via email. After finding that unrealized profits could not be withdrawn and the platform’s market maker did not adjust the price, the user continued trading. Paradex later acknowledged the pricing error but claimed the user violated trading rules, labeling them an 'attacker' and refusing compensation.
Paradex User Reports $219,000 Loss After Forced Liquidation Amid Pricing Error
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