The Huobi exchange token HT flash crashed a few hours ago but has since made a quick recovery. However, company advisor Justin Sun brushed it off as ‘market behavior.’
There have been some strange happenings with the Huobi token recently. In the early hours of March 10, HT flash crashed from around $4.70 to close to below $0.40 in a matter of minutes.
The exchange token hit an intraday high of $4.92 on March 9. However, it has since lost almost 20% on the day, currently trading at around $3.95.
Furthermore, the massive liquidation event sent Huobi token to a new all-time low, albeit very briefly.
Justin Sun Dismisses Huobi Token Dump
Huobi advisor and TRON founder Justin Sun was quick to dismiss the flash crash. In response to the reaction on crypto Twitter, he stated that the exchange and all funds were safe.
He explained that these leveraged liquidations were caused by a ‘few users’ triggering a cascade of forced liquidations in spot and contract HT markets.
“Currently, all work is proceeding steadily and there are no unexpected incidents, and these fluctuations are simply a result of market behavior.”
Sun stated that Huobi would fully bear any losses caused by HT market fluctuations. Additionally, he added that a liquidity fund of $100 million would be invested to improve the liquidity depth on the exchange, according to លោក Wu Blockchain.
Furthermore, blockchain sleuth “Lookonchain” has uncovered some recent stablecoin movements by the TRON founder.
On March 9, Justin Sun withdrew $80 million in stablecoins from Huobi. These were comprised of $40 million in USDT, ៥៣ លានដុល្លារ USDC, and $20 million in ដុល្លារអាមេរិក, TRON’s native stablecoin. $60 million of them were deposited in his own Defy platform JustLend and អេវ៉ា។.
Source: https://beincrypto.com/huobi-token-tanks-93-minutes-justin-sun-liquidations-market/