Cryptocurrency prices fell sharply as reports surfaced regarding a significant security incident involving the Bybit exchange, which experienced a sudden outflow of $1.4 billion worth of ether (ETH). Bitcoin (BTC) dropped to around $97,000, down from near $100,000 earlier in the day, while ether slipped nearly 4%, falling below $2,700. The downturn led to the liquidation of approximately $100 million in leveraged trading positions, primarily affecting those who had bet on rising prices. Observations by blockchain analyst ZachXBT noted the suspicious outflow, prompting Bybit's CEO, Ben Zhou, to later confirm the hacking incident, contributing to the market's overall volatility. The turbulence underscores ongoing concerns surrounding the safety and security of centralized exchanges, particularly in the wake of substantial financial outflows. As traders reacted to these developments, the crypto market faced renewed scrutiny and uncertainty regarding potential future incidents.

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