Cody McGrath 
Deepak.eth, CEO of Crypto.com, believes a single large margin call appears to have exacerbated the flash crash experienced by Chain.com.
On Tuesday, the value of tokens issued by Chain.com (XCN), a cloud blockchain infrastructure provider, unexpectedly dropped by more than 90 percent. However, they were able to recoup the majority of their losses later in the day.
In a post-mortem study that was provided by Chain.com, the company stated that a market maker and API problem began to cause XCN to decline in huge percentiles around 1:00 pm SGT (5:00 am UCT), which is when the analysis was conducted.
During the course of the event, similar bids were trapped via API orders, which resulted in further downward selling pressure owing to insufficient liquidity and margin calls.
The developers at Chain.com spoke with exchanges and market players and determined that the issue was not due to a breach or exploit at around three o’clock in the afternoon (seven o’clock in the morning UCT), at which point prices began to recover.
Deepak.eth’s take on the value drop experienced by Chain.com
A single huge margin call appears to have contributed significantly to the severity of the flash crash, as stated by Deepak.eth, CEO of Crypto.com.
Tokens to the value of up to 500 million XCN ($42.24 million at the time of writing) that were acquired through leveraging were sold off in a relatively short amount of time.
Alterations in the supply and demand of a token do not always have a direct and proportionate impact on the price of that token.
It’s a prevalent misperception that a single huge deal or a series of hefty buy or sell orders can’t alter a token’s price. Not always, especially in low-liquidity conditions.
The price of Cope’s token plunged 77% as its developers said they needed to sell tokens “to keep dev going during this hard period.”
Dev.eth revealed this a month ago. Due to little liquidity, the developers only needed to sell 10% of the COPE tokens in circulation for the price to fall.