EDGE suffered a sell-off over the past 24 hours, falling from $1.15 to around $0.65. The token briefly plunged as low as $0.37 before recovering part of its losses, but selling pressure remains.
The decline triggered heavy liquidations across derivatives markets. Data from Coinglass shows total liquidations reached approximately $6.28 million during the period, with long traders taking the biggest hit at $4.83 million. Short positions accounted for roughly $1.45 million.
As concerns spread across the community, the edgeX team moved quickly to address speculation. The project stated that the incident was not caused by a hack, exploit, or security breach.
According to edgeX, preliminary findings suggest the price collapse may have been linked to deliberate market manipulation by an external party. The team said it is actively investigating the incident and working with exchanges to identify those involved.
The project also emphasized that its infrastructure, systems, and smart contracts remain secure.
Reports indicate that approximately $1.6 million in liquidity was withdrawn from main trading venues and edgeX-related pools around the time of the crash. In low-float markets, sudden liquidity withdrawals can significantly amplify price movements, especially when leveraged positions begin to unwind.
Adding to the speculation, trading group Evening Trader reported that a wallet deposited roughly $1.33 million worth of EDGE shortly before the token experienced a sudden 74% decline. The address has since attracted attention as investigators examine the sequence of events.
The explanation from edgeX has not satisfied everyone.
Blockchain investigator ZachXBT questioned whether market manipulation alone explains the crash. He argued that a significant portion of EDGE’s supply appears concentrated among a small number of holders and urged the project to disclose more information about its market makers and liquidity arrangements.
His comments have fueled debate within the community over whether the collapse stemmed from external manipulation, structural weaknesses, or a combination of both.
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