Edge Blames Market Manipulation After Price Collapse

EDGE Flash Crash Rocks Derivatives Market

EDGE, the native token of decentralized derivatives exchange EdgeX (@edgeX_exchange), suffered a sharp flash crash on June 1, with the sell-off beginning shortly after 9:00 p.m. UTC. Wu Blockchain reported the token fell to $0.6115 from $1.1424 on Binance, a drop of around 46.8%. It then plunged further to a low of $0.315 before partially rebounding to $0.751, marking an intraday decline of more than 77%.

Liquidations Mount as EdgeX Denies Security Breach

The move triggered a wave of forced liquidations across derivatives markets. According to Coinglass data, EDGE saw liquidations totaling $5.2152 million in the span of four hours, including $4.0962 million in long positions and $1.119 million in short positions.

The EdgeX team moved quickly to address the situation, confirming it had observed sudden and unusual price fluctuations and was actively investigating the cause. The team stated there was no hack, exploit, or security breach, and that its systems remained intact. Early findings pointed to possible market manipulation by an external party, with a formal investigation underway. The project said it would publish updates once verified information was available.

After the sharp drop, unconfirmed rumors spread through the community, including speculation about large-scale selling by the project team and claims the business could shut down. EdgeX urged users to rely only on information released through its official channels and to treat unverified speculation with caution.

The crash did not occur in a vacuum. EDGE has faced ongoing scrutiny over token concentration since its TGE in March 2026. On-chain analytics had previously revealed that approximately $195 million worth of Genesis airdrop tokens were concentrated in wallets linked to the team, which prompted EdgeX to voluntarily lock 141,658,500 EDGE tokens (14% of supply) in an audited vesting contract for one year. With a relatively low market capitalization, the token remains susceptible to volatile price swings. As of the time of writing, the project has not disclosed specific details on the cause of the plunge, and the investigation remains ongoing.

Sources:
Bitget News: EDGE Flash Crash Drops Over 77% to $0.315
Bloomingbit: EdgeX Token Tumbles as Much as 70%; Project Probes Abnormal Price Move
DropsTab: edgeX (EDGE) Token Overview and Vesting Data