tiny and phantom loans clogging up primary market

Putting on my computer geek hat, it is most likely that the 1 cent loans are created by the error of choosing to represent the money in the software using a real/continuous/floating point data type. This is not intended to represent discrete numbers, like money, as this causes problems with comparing numbers for equality and "rounding errors" in computations.

toms viventor , during your system rewrite, instruct your software engineers to use a currency or fixed point data type for the money. If the language used does not support this data type directly just use a large integer type and keep all the money in cents. You should then convert from euros and cents to cents during user input, and from cents to euros and cents during display. This will save you a lot of pain and bugs later.
 

Are you chris in disguise ? :-) Is 20 / 40 dp's enough ?

Bondora used to have/still has? the fixed point approach, resulting in a grossly unfair distribution of small repayments to investors each having small loan pieces, like 5 euros, so many here have seen fixed point in action. Bad experience.
On 5 euro loan piece your capital repayment will always have half-cents, and Bondora resolved it by giving one lender a cent and 2nd one zilch. If you have a thousand loan pieces, then loosing half a cent on each every month accumulates quickly.

Agreed, I hope they will fix it in the next release but since I use AI mostly I do not care much

I have noticed one benefit of these phantom loans. Assuming that all loans leave a trace 0.01 that cannot bought, you can see how many loans are added each day.