Huobi has set up a $100 million liquidity fund following a 90% flash crash of the exchange’s Huobi Token (HT) on March 9.

The exchange’s global adviser Justin Sun confirmed this development, adding that the funds have been sent to the exchange.

According to Sun, HT’s sudden collapse was caused by “a few users, ” triggering a cascade of forced liquidations in the spot and HT contract markets. However, he added that these fluctuations were simply a result of market behavior.

Sun said Huobi would improve its multi-currency liquidity by setting up the $100 million liquidity fund to forestall a future recurrence.

Meanwhile, the Tron founder promised Huobi would “bear all leverage-through position losses on the platform [that] resulted from this market volatility event of HT.”

(By Oluwapelumi Adejumo)