If I've read correctly, C-CEX didn't deploy the XVG hard fork correctly and this resulted in loss of coins (That's some pretty terrible sysadmin work if it's true).

Customers of C-CEX got angry about their losses so C-CEX issued a token to replace customer's XVG (presumably it was to be redeemed 1:1 for XVG later).

People started trading the token rapidly. The token quickly dropped to almost no value. If the token is ever redeemed for XVG, somebody will make a lot of money. If the token is not redeemed, there will be some big bagholders.

There should be some downward pressure on price as C-CEX either tries to tank XVG so they can buy back, or they distance themselves from the scandal and XVG loses another exchange platform.