Late Monday, the crypto exchange and derivatives trading platform BitMEX witnessed a startling event as bitcoin prices momentarily plunged below $9,000 on its USDT spot market.

This incident has sparked widespread attention, though BitMEX assures that its derivatives trading remains unaffected. However, according to a Criptonoticias report, at least one person was able to purchase at that price.

Unusual Market Activity Under Scrutiny BitMEX reported 'unusual activity' involving large sell orders which led to the flash crash. The exchange is actively investigating the situation, focusing on potential misconduct by traders.

Despite the turmoil in the spot market, BitMEX stressed that this had no bearing on its derivatives markets or the index price for its popular XBT derivatives contracts.

"This incident had no impact on our billion-dollar derivatives markets."

Community Reactions and Exchange Response The crypto community reacted swiftly, with speculations over the cause and consequences of the flash crash. Notably, a pseudonymous member pointed out that the sell-off involved over 400 BTC, leading to significant slippage.

BitMEX responded by clarifying that withdrawals had not been broadly disabled, only for accounts under investigation.

Ensuring Market Fairness BitMEX attributes the price drop to the magnitude and frequency of the sell orders, which overwhelmed the market's capacity to absorb them efficiently. The platform emphasizes its approach to creating equal trading conditions, highlighting its independent market maker policy.

Deposits and withdrawals are being processed as usual, with BitMEX reassuring its users of the robustness of its systems and the independence of its derivatives markets from the incident. The ongoing investigation aims to maintain the integrity and fairness of the trading platform.