Poloniex, a Bitcoin trading post similar to Mt. Gox, has lost 12.3 percent of the Bitcoin stored in hot wallets on the website.
The owner of Poloniex, Tristan D'Agosta — a.k.a. Busoni — admitted to the loss and asked users how they would like to be compensated.
In a forum post, Busoni said that a hacker took advantage of a processing flaw in the Bitcoin exchange post. When users submit a withdrawal request, the input is checked against your balance, deducted, and the new amount recorded within a database. However, it was discovered that placing several withdrawals all in practically the same instant meant each request was processed at more-or-less the same time, resulting in a negative balance but "valid insertions into the database, which then get picked up by the withdrawal daemon."
With all the volitility in the market, are we on the verge of a bitcoin market collapse?