Their version of events seems like ass covering - for a loss on a principle level for OKeX the PnL from the clients position would have exceeded the clients tot

Their version of events seems like ass covering - for a loss on a principle level for OKeX the PnL from the clients position would have exceeded the clients total margin posted not just that clients posted maintenance margin - which it appears they are claiming. OKeX's risk team given the liquidity situation must not have either been able to 1) raise more margin via a margin call AND 2) been unable to unwind the position prior to margin exhaustion given liquidity constraints. I find it truly shocking they did not have net and gross delta limits defined for client accounts and did not model or monitor margin / liquidity dynamics. It is simply amateur hour at play. The client essentially had a massive free put option against the OKeX and its members. I would not be at all surprised if the client was actually the other way on another exchange (net flat) and simply arbed OKeX's socialised policy.