Lighter Says Trading Bot Glitch Briefly Disrupted HYPE and ZEC Markets

Lighter said a trading bot malfunctioned on July 25 and briefly affected the HYPE and ZEC markets. According to Odaily, HYPE touched $60.96 and $56.31 within half a minute during the event, while external trading prices were around $58, before recovering within one minute. Lighter said the bot started with $500,000 in capital and, within five minutes, conducted $27 million in round-trip trading in HYPE, accounting for 74.2% of market volume. In ZEC, it generated $220.8 million in taker volume, or 86.7% of the market, briefly lifting the price to $521. The company said its risk engine marked positions using anti-manipulation fair prices and rejected 801 orders when margin was insufficient. The bot ultimately lost about $482,000, all from its own funds. Lighter's liquidity pool, LLP, gained about $143,000, and 40 separate accounts each made more than $1,000.