The Moonwell cryptocurrency exchange lost nearly $2 million due
to a technical glitch in its automated system, which uses
artificial intelligence algorithms to set prices and execute
transactions, AzerNEWS reports.

The incident occurred on February 15, following a system update
intended to improve the accuracy of crypto asset pricing. However,
a misconfigured component began transmitting the wrong price for
the cbETH digital asset.

Instead of the actual market value of over $2,000, the system
“saw” the price as roughly $1. The platform then interpreted this
as a sharp drop in the value of user deposits, rendering them
insufficient to cover loans.

Trading bots, programs that automatically execute…