Bybit SERAPH Spot-Futures Price Disparity of 10x, Arbitrage Strategy Collective Liquidation Losses Exceed $17 Million: Who Is to Blame?
Dear Bybit Team and CEO Mr. Ben Zhou,
I am a loyal user of the Bybit platform, relying on spot-futures arbitrage trading to generate profits. However, during the abnormal price event of the SERAPHUSDT U-margin perpetual contract around 20:23 UTC on October 6, 2025, I suffered devastating liquidation losses. I’ve learned that many prominent arbitrage traders were also affected, with total liquidation losses exceeding $17 million, and individual losses reaching as high as several million dollars. This incident not only caused significant financial losses but also shook the confidence of numerous traders in the Bybit platform. With a heavy heart, I write this letter to urge you to address my concerns and promote platform improvements to protect ordinary users like myself, ensuring that spot-futures arbitrage strategies can continue to operate normally on Bybit.
