South Korean crypto exchange Bithumb mistakenly credits hundreds of users with 2,000 Bitcoin instead of 2,000 Korean won, worth about $1.5, as part of a reward payout. The operational error results in a sudden surge of unintended Bitcoin balances across user accounts.
Some recipients immediately sell the credited assets into the order book, triggering sharp downward pressure on prices. As a result, Bitcoin briefly trades about 10% below the broader market price on Bithumb, reflecting a localized liquidity shock rather than a global repricing.
The incident highlights operational and risk-management challenges faced by crypto exchanges, particularly during automated distributions. Market observers note that such errors can temporarily distort prices and undermine confidence, even when broader market fundamentals remain unchanged.