Brokerage firm Zerodha recently came under fire after users reported a technical glitch that prevented their orders from being executed. This glitch resulted in significant financial losses for some traders.
A user with the handle ‘@overtrader_ind’ shared his experience on social media platform X, detailing a substantial loss of Rs 10 lakh. He attributed his financial loss to an implementation issue or developer bug at Zerodha, rather than a technical glitch or network issue.
“REASON I lost 10L is because of Zerodha implementation issue/development bug and not because of any technical issue or network issue,” the user wrote.
He explained that he had placed market orders starting at 9:19 a.m. Although the orders appeared in his order book with the status OPEN, he was unable to cancel them despite multiple attempts. Throughout this process, his available margin kept changing.
The user described the sequence of events that led to his loss:
- My market orders have been successfully sent to Zerodha servers
- Zerodha successfully sent them to NSE
- NSE responded with successful orders to Zerodha
- Zerodha received these successful purchase orders
- Meanwhile, Zerodha sends out a notice explaining the status issue
- IMPORTANT: Zerodha made a serious mistake here. They were unable to update the status of executed orders from OPEN to COMPLETE, and they all got stuck on Zerodha servers.
- This is why I could not see any orders in the FULFILLED section of my order book, and they were all in the OPEN Orders section.
- I couldn’t cancel them because they were already running on the Zerodha server. I couldn’t see them because Zerodha never sent them to me.
The critical error occurred when Zerodha failed to update the order status from OPEN to COMPLETED. As a result, the user was unable to see his orders in the FULFILLED section of his order book. Since the orders were already executed on Zerodha’s server, he was unable to cancel them.
Several other X users also expressed their frustration, with some threatening to take legal action against Zerodha. One user wrote: “My orders are not being carried out. I will sue you if I lose a single cent.”
In response to the backlash, Zerodha issued an apology on X, explaining that the issue has been resolved. “Some of our users were having issues viewing the latest status of some orders even though the orders themselves were successfully placed. This issue is now resolved. The status of new orders is updating properly now. We are working on updating the status of older orders. We apologize for the inconvenience,” the statement read.