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$65 million liquidated within minutes due to false news
A tweet from Cointelegraph caused violent volatility in the markets.
matt kim
October 18, 2023
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A tweet from Cointelegraph caused violent volatility in the markets.
The tweet falsely claimed that U.S. regulators had approved BlackRock's proposed ETF iShares, leading to Bitcoin abruptly rallying from $27,700 to $29,400 in one hour.
However, BTC quickly shed most of the day’s gains within 45 minutes of its local high after the markets realized the false claim.
Watcher guru reports that some $65 million was liquidated within minutes.
Cointelegraph responded by editing and then deleting the tweet.
Later, they acknowledged the original tweet’s inaccuracy and assured an investigation into its origin.
SEC warned users not to trust any information on SEC’s actions from other sources.
Cointelegraph later revealed that their standard procedure (of verifying sources) before posting breaking news on social media was not followed.
The incident triggered some speculation that someone at Cointelegraph may have engineered the incident as an elaborate insider trading opportunity.
However, these rumors were dismissed by Scott Melker, host of “The Wolf Of All Streets” podcast.
He shared a screenshot of Rollbit’s trading leaderboard for the day, from which the purported “Cointelegraph” account was missing.
Some believe that such speculation and misleading information could delay the approvals for ETFs even further.
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