A settlement failure at crypto exchange Gate routed a $0.33-per-share dividend tied to Franklin Resources onto the wrong trading contract on Wednesday, wiping out leveraged traders who had been betting against the position.

The dividend relates to Franklin Resources, the US asset manager behind Franklin Templeton, whose shares trade under the ticker BEN. One account was left approximately $1.46 million in the red following the misapplied settlement.

Dividend events normally work against short positions: a share price typically slips by roughly the payout when the stock goes ex-dividend, and short sellers owe the dividend on borrowed shares to their lenders. When that corporate action is booked against the wrong instrument, the loss arrives through a settlement error rather than a market move — a reminder that leveraged contracts on traditional equities listed by crypto venues carry operational risk on top of price risk, since dividends and other corporate actions must be applied to the correct contract.

Whether Gate corrects the misapplied settlement, and how the roughly $1.46 million shortfall is addressed, remain the immediate open questions.

This content was first published on COINOTAG: https://en.coinotag.com/gate-ben-futures-error-1-46-million-account