Overstock, an online retailer, is known for its many deals and sales, but their mix up in BItcoin and Bitcoin Cash payment is the latest news. This allowed customers to buy or make payments in BItcoin Cash instead of Bitcoins.
As of now, the value of Bitcoin, according to Coin Market Cap, is around $14,000, whereas Bitcoin Cash is merely at $2, 566. If a customer buys a product, and reports refund, then the possibility of being refunded in BItcoin is high.
The glitch was brought to notice by an individual researcher, Brian Kerbs of KerbsOnSecurity. Kerbs showed a customer can gain Bitcoin after making payment in Bitcoin Cash.
AFter making a purchase of solar lights, Overstock asked Kerbs to send 0.00475574 worth of Bitcoin to their address. The solar lights were worth $78.27, but Kerbs made the payment in Bitcoin Cash and hence, paid on $12.02 for those lights. When Kerbs requested refund, his request was processed, approved, and paid out in Bitcoin.
The risk of this glitch increases with the increase in the price of the product.
Overstock got in touch with their partner, Coinbase, for preventing the worse for happening. Later, Overstock claimed that the issue has been resolved, the payments are now enabled on the website.
Coinbase quickly released a statement claiming the glitch was caused by merchant partner improperly using the return values on their API. On the other hand, Overstock argues that no changes were made from their end.