Very interesting - I feel that if the losses were the result of a bug in the GDAX software, then people should be compensated. However, if the system was working as it should, and people lost their money because they made risky margin orders, then they should have to live with their losses.
I only ever buy or sell what I have. If you pay with borrowed money, then you assume the risk of multiplying your losses. If there was no error in the trading platform, and GDAX is refunding people for their bad decisions, then what precedent is that setting? Will they refund me if I make risky margin trades and lose money? Should I keep complaining until they refund me, knowing that they will eventually give in?
In their first update they stated that it was not due to a bug in the system so they are just bailing out people as a PR move and to retain customers. I get it from a business perspective but I agree that it sets a dangerous precedent.