Yeliz Akmaca 
Ethereum (ETH) has experienced sudden price swings, which, according to industry sources, may have been caused by a market maker’s automated grid trading strategy malfunction. Allegedly, parameter inconsistencies caused order books to temporarily empty; as the price dropped rapidly, bots triggered each other, creating a brief mini-chaos.
One of the largest market makers in the sector, as estimated, normally aims to stabilize prices and profit from small movements through grid strategies. However, according to claims, this time some of the system’s orders reacted unexpectedly for a short period.
Ethereum Plummeted Instantly: Bots in Panic
Although not officially confirmed, it is being discussed that an automated buy-sell strategy used by one of the sector’s major players went out of control, causing prices to collapse.
Observers suggest the potential chain reaction unfolded as follows:
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Bot A sent an order.
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Bot B reacted quickly and created additional orders.
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Bot C stepped in, possibly triggering a stop-loss chain.
A trader reportedly said:
“The price dropped, got stuck, and then bounced back quickly. It wasn’t a normal sell-off; it was entirely a system-triggered chain reaction.”
Some exchanges may have experienced temporary gaps in order books, possibly triggering other systems, causing the price to fluctuate within minutes.
🚨JUST IN: Ethereum is experiencing abnormal price swings due to a malfunction in a market maker’s grid trading strategy. pic.twitter.com/pXusXiZTGY
— Coin Bureau (@coinbureau) February 7, 2026
Market Maker’s Silence Sparks Panic
Allegedly, the relevant market maker has yet to release an official statement. Some technical observers say the incident may have been linked to a single algorithm component and that the system might have stabilized quickly.
Analysts note that such mini-chaos events highlight the fragility of crypto markets. Even a minor technical deviation can create a chain reaction, potentially triggering short-term panic in markets dominated by algorithmic trading.
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