Bitcoin crashed at $ 5,402 in error on the Quants-backed network

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(Bloomberg) – A cryptocurrency data network run by some of Wall Street’s biggest players showed Bitcoin falling around 90% on Monday, a problem that has not shown up on other platforms.

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The platform, called Pyth, is touted by its supporters as an industry-grade source for price information on assets such as stocks and cryptocurrencies. Its contributors include financial giants like Jump Trading Group, DRW and FTX.

On Monday, he briefly reported the price of Bitcoin at $ 5,402. Engineers are continuing to investigate the cause and a full report is in the works, Pyth tweeted Monday morning. There were no further tweets from Pyth on this.

This is a catchy mistake for a system that gets its information from some of the more sophisticated traders.

For something like this to be successful, the data has to be a source of trust, Joe Molluso, co-president and co-COO of Virtu Financial Inc., a contributor to Pyth, said in an interview in June.

Things appear to have returned to normal on Tuesday. The price of Bitcoin was recently given at $ 41,888, close to prevailing levels.

This is the second recent problem. Pyth connects to the Solana blockchain, which went down for more than 17 hours last week. This blackout also destroyed Pyth.

Read more: What Solana’s Blackout Reveals About Crypto Fragility

It is unclear just how extensive the problems caused by Bitcoin’s plunge on Pyth could have been. Bonfida’s Twitter account, a project built on Solana, said the drop caused a series of liquidation events in the Audaces protocol market BTC-PERP (unfortunately working as expected). Audaces is Bonfidas’ perpetual term platform.

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