The decentralized exchange edgeX is offering user refunds and a $200,000 bounty after its EDGE token crashed by over 70%, triggering $2.8M in liquidations. The exchange blames an external attack exploiting thin liquidity, but investigator ZachXBT alleges the collapse was due to concentrated insider ownership. edgeX will compensate users for actual losses up to 100,000 USDC and is adding market makers to prevent future incidents.
EDGE token price crash
- ▪As of June 3, 2026, the EDGE token was trading near $0.69 with a market capitalization of about $242 million
- ▪The price crash triggered over $2.81 million in liquidations, with long positions accounting for $1.96 million
- ▪The EDGE token's price fell approximately 70-71%, from around $1.14-$1.40 to a low of $0.36-$0.40, on or around June 1-2, 2026
Coordinated sell attack mechanics
- ▪The initial sell-off caused a 23% price drop that spread to perpetual markets on edgeX and centralized exchanges
- ▪edgeX claims the crash began when 174 addresses flooded a PancakeSwap pool with sell orders during a period of thin liquidity
- ▪Combined sell volume across Binance, OKX, Bybit, and edgeX reached $140.66 million within one hour
EdgeX user refund program
- ▪edgeX is offering "goodwill care payments" to users who incurred losses from long position liquidations or stop-loss triggers on June 2, 2026
- ▪Compensation covers actual losses but excludes trading fees, funding fees, or unrealized profits
- ▪The refund is capped at 100,000 USDC per user and will be paid 50% in USDC and 50% in EDGE tokens
ZachXBT insider allegations
- ▪The edgeX team has stated multiple times that they did not sell their allocations and had no involvement in the attack
- ▪Blockchain investigator ZachXBT alleged the crash was caused by the EDGE supply being controlled by a few insiders with a low float
- ▪ZachXBT called on edgeX to name the counterparties and market-maker agreements that led to the event
Market maker liquidity expansion
- ▪The goal of adding liquidity providers is to deepen EDGE liquidity and make similar exploits structurally more difficult
- ▪In response to the incident, edgeX has onboarded additional market makers and liquidity providers
Bounty for attacker identification
- ▪edgeX is offering a 200,000 USDC bounty for information that identifies the attackers
- ▪The bounty will be awarded for material information that leads to the identification of those responsible for the market manipulation
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