A Major Bitcoin Price Crash: The Bithumb Mistake
On February 6, 2026, at 4:14 p.m., a significant event shook the cryptocurrency world. Bitcoin's price on the South Korean exchange Bithumb plummeted to a staggering $55,000, a 15.8% drop from other exchanges, all due to a simple yet devastating mistake.
It all started with a seemingly minor internal reward distribution error. Bithumb mistakenly credited users with 2,000 BTC each, instead of the intended small reward of 2,000 Korean won (approximately $1.50). This resulted in tens of millions of dollars' worth of phantom bitcoin appearing in hundreds of user accounts, even though no actual bitcoin was moved on the blockchain.
The impact was immediate and severe. Users, seeing these enormous balances, rushed to sell, triggering a sharp selloff on Bithumb's BTC/KRW pair. This sudden influx of sell orders caused a flash crash, sending Bitcoin prices to an unprecedented low of $55,000.
However, Bithumb's quick response and robust internal controls prevented further damage. The exchange identified the abnormal transactions and restricted trading in the affected accounts within minutes. Their liquidation prevention system also operated flawlessly, avoiding any cascading forced liquidations linked to the price movement.
Despite the initial chaos, Bithumb assured its users that the incident was not due to an external hack or security breach, and customer assets remained secure. The company's swift action and transparency likely played a crucial role in maintaining trust during this challenging time.
