Bithumb’s BTC payout glitch sparks a sudden price spike — exchange apologizes

Bithumb had one of those days every exchange dreads — not because of hackers, but because of a plain old operational mistake with real market consequences. In a notice posted Feb. 7, 2026 (00:23 KST), the South Korean exchange apologized after an event payout accidentally delivered an abnormal amount of bitcoin to some users, which was then sold and briefly distorted BTC pricing on the platform.

Bithumb says internal controls flagged the abnormal trading quickly, the exchange restricted trading on the related accounts, and the market price returned to normal within five minutes. The company also stressed this was not a security breach and said deposits, withdrawals, and trading were operating normally.

What Bithumb says happened (and why it looked wild)

According to Bithumb, the incident started during an event payout process when “some customers” received an abnormal quantity of BTC. A portion of the receiving accounts then sold the BTC, which created a sudden, sharp move in the exchange’s BTC price — the kind of spike that looks like a hack until you learn it’s basically a spreadsheet problem with a market order attached.

Bithumb says its “domino liquidation prevention” system functioned normally and prevented cascading liquidations linked to the abnormal pricing. It also said it has not identified customer losses so far, and promised to share follow-up facts transparently and ensure no customer is harmed.

Why it matters for crypto

• Exchange incidents aren’t always hacks. This one is explicitly framed as an internal process error — a reminder that operational controls can move markets just as fast as security incidents.
• Microstructure can amplify mistakes. A sudden injection of BTC into a few accounts, followed by quick sells, is exactly the recipe for a sharp, short-lived dislocation on a single venue.
• Liquidation protections get stress-tested in real time. Bithumb claims its anti-domino liquidation system prevented chain liquidations — a key point for any platform offering leveraged exposure.

What to watch next

• Bithumb’s promised follow-up. The exchange said it will disclose additional facts — the next update should clarify scope, root cause, and remediation.
• How the payout is reconciled. The notice doesn’t spell out whether distributions will be reversed, clawed back, or otherwise adjusted — that’s the practical question traders will be watching.
• Any user impact reports. Bithumb says no losses have been identified so far, but it also commits to ensuring no customer is harmed — which suggests the review is ongoing.

Source: Bithumb Notice