EdgeX to Compensate Users After $1.25M Low-Liquidity Attack Triggers EDGE Selloff

EdgeX has published a detailed incident report after EDGE suffered a steep price decline across crypto venues. The team said it did not participate in the selloff, adding it will compensate impacted users as a goodwill measure. According to EdgeX, the move began on PancakeSwap when attackers struck during a low-volume window and exploited roughly $1.25 million in thin onchain liquidity. The report says the disruption cascaded into futures markets by tripping highly leveraged positions, then spread into centralized exchanges. EdgeX stated that at 05:12 on the day of the incident, 174 addresses sold about 159,000 EDGE within one minute, around 10 times the selling volume seen in the preceding minutes. The resulting pressure led to the liquidation of 68.2% of long positions in futures markets, after which panic selling reached spot markets. Centralized-exchange trading volume reportedly rose to about $70 million within two hours, or roughly 7 to 10 times the typical daily level. The company said project-team token balances did not change during the event and that onchain data can verify this. EdgeX added that preliminary checks by several centralized exchanges are consistent with its findings. EdgeX also announced follow-up steps, including an onchain rewards program offering a 200,000 USDC bounty for information that helps identify the attackers. The team said it will work with additional market makers to boost both onchain and offchain liquidity. Compensation will apply only to losses incurred on EdgeX. The company said it will reimburse users who were harmed by forced liquidations of EDGE long positions or stop-loss triggers in EdgeX V1 and V2 perpetual futures contracts between 04:50 and 06:00 on June 2. Compensation is capped at 100,000 USDC per user. After verification, 50% will be paid in USDC within seven days, and the remaining 50% will be paid in EDGE based on the seven-day time-weighted average price (TWAP), with those tokens unlocking in the first week of April 2027. EdgeX did not announce compensation for users who incurred losses from EDGE's price drop on centralized exchanges. This is not investment advice.