Bitcoin News Is Not For Sale

Please don’t skip this message — it only takes a few minutes to read. Sorry to bother you, but time is running out.

Bitcoin is freedom. If you think independent media that is bitcoin-only is important, if you believe information and education about bitcoin matters for adoption, and if you have gained something from our work, we would be grateful if you could chip in $21. 

Join the 2% of our readers who occasionally make a donation. If everyone reading this donated just $21, we would reach our target in a couple of hours. $21 won’t break you, we hope.

To cover the cost for our servers, editors, writers, and thumbnail artists we rely on our readers’ generous support. 

How You can chip in:

  • Send a Sats as a tip to a writer. Each and every one of our writers has an active tipping widget.

  • Join our campaign on Awesome perks are waiting for you such as the Bukele Blend Coffee.

Your support ensures that Bitcoin News stays independent with a laser focus on Bitcoin and only Bitcoin.

Funding Progress

Poloniex Forces Users to Share $14.4 Million Losses after CLAM Flash Crash

written by

Poloniex Forces Users to Share $14.4 Million Losses after CLAM Flash Crash

Support free journalists: > send a tip

A flash crash on the CLAM altcoin trading market on cryptocurrency exchange Poloniex has resulted in instant losses on a margin loan facility the platform provided. As a result about 0.4% of Poloniex users have shared the burden of the loss, estimated at BTC 1,800 (USD 14.4 million at time of writing).

According to a blog post published yesterday by Poloniex:

“On May 26, a sudden, severe price crash in the CLAM market caused a number of margin loans to default, resulting in a roughly 1800 BTC generalized loss in the Poloniex BTC margin lending pool.”

Poloniex provides a popular peer-to-peer lending and borrowing system to users outside the US, a margin lending pool loss as such extends to all lenders. Yesterday, the exchange has calculated that the principal of all active Bitcoin loans were reduced by over 16% and impacted o.4% of all users.

They explained:

Lenders impacted will see the reduction in their accounts when they next log in. All of the defaulted borrowers’ accounts were frozen after they defaulted and will remain frozen until they repay their loans and comply with Poloniex terms of service.

The exchange explained that the “velocity of the crash and the lack of liquidity in the CLAM market made it impossible for all of the automatic liquidations of CLAM margin positions to process as they normally would in a liquid market”. It also said that loan values were collateralized in CLAM, so both borrower positions and collateral lost most of their value at the same time. Many borrowers were unable to repay loans with digital assets held on Poloniex.

Poloniex claims to be pursuing defaulted borrowers and have pledged to return recovered funds to affected lenders.


Follow on Twitter: @bitcoinnewscom

Telegram Alerts from

Want to advertise or get published on – View our Media Kit PDF here.

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


Read More Bitcoin News


Join our Newsletter


Latest on Bitcoin News

Video of the Week

Join our Newsletter