Fake Bitcoin ETF Approval Tweet Causes $90M in Liquidations
A series of fake tweets from the U.S. Securities and Exchange Commission (SEC)’s X account led to price volatility and the liquidation of nearly $90 million worth of bitcoin long and short positions. Hackers took control of the SEC's account, posting about the anticipated bitcoin exchange-traded fund (ETF) approval decision. This caused bitcoin prices to spike to $47,680 from $46,800, before falling to $45,400 when the tweets were revealed as fake. Over $500 million in futures positions were opened in a ten-minute period following the initial post. Liquidation occurred when the exchange forcefully closed a trader’s leveraged position due to a partial or total loss of the trader's initial margin. The incident highlighted manipulation risks in the industry and led to criticism of the SEC's security measures. A decision on thirteen proposed bitcoin ETFs is expected soon, with approval odds over 90% according to Bloomberg analysts.
