‘I lost Rs 10 lakh because of…’: Zerodha apologises after man explains how he lost a lot of money on the trading platform

Brokerage firm Zerodha came under fire recently after users reported a technical issue that stopped their orders from being executed. This malfunction 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 a developer’s bug at Zerodha, rather than a technical glitch or network problem.

“REASON I lost 10L because of implementation issue/a developer’s bug by Zerodha not because of some technical glitch or network issue,” the user wrote.

He explained that he placed market orders starting from 9:19 AM. Although the orders appeared in his orderbook with an OPEN status, he was unable to cancel them despite multiple attempts. Throughout this process, his available margin kept changing.

The user outlined the sequence of events that led to his loss:

1. My market orders went to zerodha servers successfully
2. Zerodha sent them to NSE successfully
3. NSE responded with successful orders back to Zerodha
4. Zerodha received those successful buy orders
5. Meanwhile, Zerodha sends a notice explaining the status issue
6. IMPORTANT: Now Zerodha made a big mistake here. They couldn’t update the executed orders status from OPEN to COMPLETE, and they all got stuck in Zerodha servers.
7. That’s why I couldn’t see any orders in my orderbook’s EXECUTED section, and they were all in the OPEN orders section.
8. I couldn’t cancel them because they were already executed 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 COMPLETE. Consequently, the user couldn’t see his orders in the EXECUTED section of his orderbook. Since the orders were already executed on Zerodha’s server, he couldn’t cancel them.

Several other users on X also expressed their frustration, with some threatening legal action against Zerodha. One user wrote, “My orders not getting executed. Will take you to court if I lose any single penny.”

In response to the backlash, Zerodha issued an apology on X, explaining that the issue had been resolved. “Some of our users were facing issues seeing the latest status of some orders while the orders themselves were successfully placed. This issue is now fixed. The status for new orders is updating fine now. We’re working on updating the status for older orders. Apologies for the inconvenience caused,” the statement read.