Bitget, a cryptocurrency exchange, recently experienced a market manipulation incident involving a bug in its market-making algorithm, which allowed some traders to profit by exploiting the system. The exchange reportedly reversed these profits, wiping out over $100 million in trader gains during a trading volume frenzy of $12.7 billion. This action has sparked criticism, as winning traders were unable to withdraw their earnings, raising concerns about Bitget acting as its own market maker and selectively compensating only losing users. Comparisons were drawn to previous industry incidents, such as FTX's handling of the Luna crash, where the exchange absorbed losses and allowed winning traders to withdraw funds, demonstrating a different approach to risk management. The situation highlights ongoing challenges in centralized exchanges (CEXs), where internal market-making and risk controls can impact trader outcomes. Industry insiders note that exchanges often generate annual revenues of 20-40% of assets under management through mechanisms including proprietary trading and lending. The Bitget incident underscores the risks retail traders face when betting against the exchange itself, with some describing the reversal as more severe than past rollbacks at other platforms like Hyperliquid.