**BITCOIN FLASH CRASH: SOUTH KOREAN EXCHANGE BITHUMB ACCIDENTALLY AIRDROPS USERS 2,000 BTC**

The world of cryptocurrency experienced a wild ride this week as Bitcoin prices plummeted to $55,000 on the South Korean exchange Bithumb. But what caused this sudden and drastic drop? It turns out that an internal accounting error led to users being mistakenly credited with large phantom balances.

In a bizarre incident, Bithumb accidentally credited its users with 2,000 BTC each instead of a small reward worth 2,000 Korean won (approximately $1.50). The result was tens of millions of dollars' worth of phantom Bitcoin appearing in hundreds of user accounts, only to be reflected in the exchange's internal ledger.

No actual Bitcoin was moved on-chain, and the inflated balances were purely a product of Bithumb's internal mistake. Yet, users who suddenly saw enormous balances took advantage of the situation, triggering a sharp selloff on Bithumb's BTC/KRW pair. Prices plummeted 15.8% below other exchanges, with Bitcoin trading at an astonishing 81 million won ($55,000) at one point.

Meanwhile, prices elsewhere in the market remained relatively stable, unaffected by the chaos unfolding on Bithumb. The exchange itself was quick to respond, identifying the abnormal transactions through internal controls and restricting trading in the affected accounts shortly after the incident.

In a statement, Bithumb explained that its liquidation prevention system operated as intended, preventing any cascading forced liquidations linked to the price movement. The company also reassured customers that their assets remain secure, emphasizing that the incident was not related to an external hack or security breach.

Despite the chaos caused by the airdrop mistake, prices on Bithumb's platform normalized within about five minutes, suggesting that the exchange's systems are robust enough to withstand such incidents. This episode serves as a reminder of the complexities and nuances of cryptocurrency trading, where even minor errors can have significant consequences.

Bithumb has taken steps to rectify the situation and prevent similar incidents in the future. The company is working to improve its internal controls and risk management procedures to minimize the impact of such mistakes on its users and market operations.