GDAX to compensate traders for ETH flash crash

I am sure you noticed Ethereum flash crash that happened couple of day ago. If not, read about it here or watch this. TL;DR: Somebody sold huge amount of ETH for such a low price it triggered an avalanche stop loss executions bringing down ETH value.

Flash crash happened on GDAX and some blame their sub-optimal UX even though there was no violation of terms of service per se. Nevertheless, traders suffering from major losses joined forces and started to gear up for lawsuit. GDAX however stepped in and promised to compensate:

Global Digital Asset Exchange (GDAX) Vice President, Adam White, issued a follow-up statement regarding the multi-million dollar market sell order induced flash crash that momentarily drove prices as low as $0.10 USD after the order triggered an avalanche of stop order executions and margin position liquidations. The press release states that customers who experienced stop loss order executions or margin calls as a result of the dramatic price dive will be reimbursed.

Read full story here: https://news.bitcoin.com/gdax-announces-wthe-company-also-announced-that-they-will-follow-up-directly-with-affected-customers-about-this-process-next-week-ill-absorb-investor-losses-recent-eth-flash-crash/

I don't mean to defend GDAX cause an exchange should have some sort of safety mechanism as @gartz very well explained here. On the other hand it's nice to see them can taking responsibility even though they technically would not have to. Of course, one might say, that this move is mostly about GDAX saving their reputation. I'd say it's working.

Remember: Invest only what you can afford to loose.