Topic: Bitcoin flash crashes to $8200 at Binance.us (Read 432 times)

What a lucky and poor guy, the seller and buyer. I think that alone is someone who placed order to sell his bitcoin that lack of zero at the end and entered it badly resulting to that crash for a while. To the person who have bought and saw it quickly, well, it's the sellers fault and there's no responsibility for him to return it but if he's too kind enough then how he's going to return it because many will start to acclaim that they're the one who did the mistake.

Maybe it's just luck, and I'm sure it won't all last, because putting a price below $15K for bitcoin is a price that's not in my analysis anymore. Although I know in crypto anything can happen. The drop from $62k to $8.2k is almost 800%, maybe for those lucky enough to get the low price it's your day. If this isn't purely a Binance Bug, I think bitcoin sellers are too stupid to sell them in one click.

Yes it doesn't matter because it only happens on Binance us. But if we go to the fundamentals then this is bad news. This can make investors panic, so they choose to secure their assets. Regarding this issue, has there been an official announcement from Binance? I doubt if this is purely a bug or if someone sells a large number of bitcoins for under $10k. Today I also observed the price bitcoin, the price seems to be going down since the news.

It just goes to show you that placing a far lower than the market buy order and just parking it there can sometimes reap unexpected rewards.  It also goes to show when someone want to cash out, they will sometimes take whatever they can at that time as they obviously needed the cash more than they needed the crypto.

Only if they are willing to take the risk. Storing money or asset on an exchange is highly discouraged because of the risks. It didn't matter if they wanted to do it after considering the risks.

Anyone lucky enough to get involved in that 1 minute event looks like he's about to throw a big party when he realize that his buy order is filled with discounted bitcoin. This is really a mistake that can frustrate the seller for life after waiting for the best moment of his life for years to get rich with bitcoin but he is selling it at a discount. It is deeply regretted.

the binance.us UI has those warnings. but its API that bots use have different signals.
that said it was the sellers fault so i dont think he would be asking for support. he will just knotch it up to his own stupidity and treat its as a learning experience.. eg we all make mistakes.

as for luck.. well many people that cant be bothered storing coins in cold wallets/private wallets offline. and prefer to use exchanges as their 'bank account'. many of them do just leave their coin as active orders at low numbers. they dont really hope or pretend their orders will ever get filled due to happy accidents. .. but for those that did on the binance.us orderbook that day. they will be very happy they did.
cant say it will ever happen again. and i dont suggest people to leave lots of coin in exchanges for long periods, for the 'hope' of 10x discount accidents.. as it is more likely that a MTGOX 'we lost your coins' is more of a chance of happening instead of profiting

If I remember clearly, Binance warns user if he sets very low sell price and click sell button with a warning message. User must click confirm if he really wants to make a sell order. If this was the situation, then it is 100% seller fault. I am sure that Binance is not the one to blame here. But I am also sure that this seller will try to write letters to support, blame UI and try to get his BTC back.

Suggestion to everyone - make <5k$ buy orders, maybe you will be lucky one day

This flash crash doesn't seem to have any effect on other exchanges, considering it happens frequently on some exchanges, hopefully it's not a sign of a bitcoin price crash, currently bitcoin is going through the 100k price as predicted by many experts, so let's have a look at that at the end of this year

It's a shame that many bitcoins were immediately sold in one go. Binance certainly can't be completely blamed in this case, but because the bitcoin owners themselves were careless by selling out once. Maybe he made a mistake when he entered the sell order. One incident which is certainly very beneficial for the buyer, although on the other hand we also regret what was experienced by the seller.

the institutional trader made a mistake with his bot. so his fault for HIS bot selling HIS coin.
the other people on the exchange, if they are effected, well they are buyers. meaning they got cheap coin at discount.

i dont have the order history (maybe other people in topic can provide that) but most volume/orders are usually 'full' in the first 10% of orderbook so most of the 500+ coins would have sold at $63k->$57k and then a few dozen below that at probably $57k-$37k and a few dozen $37k-$8k. because the volume at the lower orderlines would be low of yeild the further away from the main spread price minutes before the action

in short it didnt sell all coins at $8k. but alot of coins above $60k, and less and less coins as the orders got eating down the price wall. so the loss, averaged out is not as bad as some think..

but for the lucky buyers that did happen to have orders sat at low numbers for the ;just in case' well. lucky for them.

I wonder if there's a refund for this considering that those were from their institutional traders.

On the other note, all exchanges should have a feature to avoid like this user's mistake happens again.

What a pleasant surprise for those who got their orders filled. 

So binance, apparently the biggest exchange in terms of liquidity, had only 600 bitcoins in their order book which made the price drop to below 10,000$. This means that other exchanges will have even less bitcoins on their order book   

Is that a flash dump? Or there is a problem with their server? Whether that is something that we do not know, those people who bought at that price are very lucky because they can now buy a lot of bitcoin at a very big discount on bitcoin. From the image, I guess that is a flash dump from the big whales that sell his bitcoin at once and make the price drops drastically, although that is happening for a short time.

Wow, I didn't notice that, I was just looking at CMC for the price, and since it tells only the average price among exchanges, it did not print the figures.
I guess we have some lucky buyers who bought at a lower price and got their order filled, I never imagine it could happen to bitcoin which has a huge trading volume. Anyway, we are back to normal now.

Wow, I didn't know things like that could happen, to be honest, but it's still no big deal. For one, it lasted for a minute, from what I've read. Also, it was only one exchange (a very popular exchange, but still) and only in one region. Thankfully, it didn't affect the global price situation at all, and even on Binance US it was allegedly due to a bug (so it wasn't even an intentional dump). I think it actually shows that even big dumps don't cause panic and that whale manipulations aren't as easy as some believe them to be. The impact was very brief and local, and overall Bitcoin wasn't hurt by these events.

just goes to show what happens when instead of one central market yielding combined orders that total 1mill coins to defend a price point. but instead there are multiple markets of the same currency pair where many markets only yield a combined orderbook of under 600coin each..

it then doesnt take much to eat through them orders.
just be glad that the arbitrage bots of other exchanges didnt trigger their own mass sell off to match the sudden event on binance US,

its one of the many reasons for bitcoin volatility. many exchanges with many having order lines that just a 0.001 can change the price by over 10cents

yep $60 can manipulate the price by 10cents. meaning a market cap that was:
18.85mill coin X $63,000.10 = $1187551885000
becomes
18.85mill coin X $63,000.10 = $1187550000000

meaning that these WEAK exchanges with WEAK volume and WEAK orderline value and WEAK gaps between price points can change a 'market cap' by $1.8m on a particular exchange, by just a single order of $60 of fiat

and also the other weakness. by having low volume of combined orderbook. can send the price of the exchange into free fall with just a few hundred coins.

..
again for emphasis. this bit of drama could have been far far worse if the arbitrage bots were triggered to sheep follow the crash on other exchanges. causing all exchanges of low volume to crash/dip

Lol, I mean, before seeing this news I would have thought: who is the crazy person who has large purchase orders at $8.5k when the price is around $65k? But I imagine that with this background, orders well below the current price are going to be multiplying.

I remember this happening to ethereum some years ago ($800 down to $200 in a minute then back up) but never to bitcoin to such a low level from $60k to $8k.
Somebody with sticky fingers made the mistake that time but I doubt it was the same for this one.
But your right, the only ones to make anything out of it would be the ones who had a big order for bitcoin at $8200 and got them filled.
Lucky on those binance.us customers to get cheap coins for sure.

Good thing it was a spot market and I don't think Binance.us offer trading derivatives.

However, I feel for the whale who decided to unload that much BTC at once. I mean, who the hell would be happy to sell off their BTC they held at 65K at 8K?

Imagine if you had a long on there that was liquidated, damn. Alternatively there will be some shorters & people who had stink low bids in feeling happy tonight

I’ve seen that mentioned around here and there, and the reason behind seems to be attributed to an institutional trader that "has a bug" in their trading algorithm. That still does not shed much light on the event, and I wonder if the sold BTCs were of a sole seller, or if it caught others in the cross-fire.

See: https://www.coindesk.com/markets/2021/10/21/bitcoin-price-flash-crash-on-binanceus-attributed-to-trader-algorithm-bug/

Recent news stated that it is a bug from their institutional trader:

I envy those who are able to gain quick profit because of the devastating bug. I mean, damn, those swings ain't small. Yet in the other hands, there might be some who got their stop loss executed.

Yeah, it could be, but we're talking binance here, there are some trading software especially binance have these kind of moderation thing (or whatever you call it to lessen the  the loss and avoid selling so much higher price).

Like anyone said like you too, it's a crazy luck. Then what do you want to call about the one who set the sell order? it's a terrible thing, imagine if it's you. Coz  who the hell will set a sell price for that low? Probably, in just a single digit mistake he ruined his life. The software should have not execute the order to avoid such thing.

Apparently it was caused by somebody selling 600BTC at market price. Binance obviously really thin order books which is what enabled this to happen.

Quite embarrassing for Binance tbh.

Could be some type of market "proganda" to get more user thinking that it might happen again.
There fore 30millions for someone who is multi millionaire it will still be small numbers.

Could be also someone just spreading coins were 30millions still is nothing for the entities wallet.

Just imagine if you placed and limit order in it for sure you will become profitable in just 10 minutes.. Lol
Perhaps there's a meaning about that long weak tail of red candle.. Wherein it's either will skyrocketed because it fails to collapse.. Or it's a sign of bearish? I hope not because indeed there's no negative news about bitcoin nowadays, and we still have months to see it  an another all time high before this year ends.

Crazy luck. I guess those investors themselves were surprised to see this happening when BTC just reached a new  ATH. However, I am not really surprised since this isn't the first time that I have seen this happening.

Flash crashes happen now and then in big exchanges like Binance etc and some extremely patient whales take advantage of them.

I don't think that it's a bug at all. This isn't the first time something like this happened in the crypto world and it certainly isn't the last. The investors who filled these orders truly deserve their profits.

I remember binance.COM have a limit to on the sell/buy order for not that low, even if you set 50% low/high of the current price will pop an error that it's too much to execute the order, for me to assume that they used the same algo in the .US platform and yet it happened.

It must be a bug ~ an expensive bug if the one who set that price for a small mistake of putting another zeros/digit. On the other side, it's a very lucky bug to those who buy/filled it lol.

Damn! Whoever had some order at a lower price got filled. They must be lucky. Just have checked out the Reddit & it seems like a few other altcoins were also affected including BNB, ADA. A guy claimed he got ADA for $1 as he had some buy orders while ADA hit $0.42; must be a blessing. Is it possible that it has been done intentionally?
Damn! It seems majority of the altcoins were affected with this.

ADA- $0.42
DOGE- $0.10
BNB- $250
& so on.

I think it must be a bug. A bug either from any market maker or any algo trader, no one in his sane mind would put a market order of this big quantity, especially these whales they know how to buy and sell slowly over a period so no one notices and you can buy/sell at good prices. I think this could even be a glitch from the system, otherwise someone must be crying very hard today because he lost a chance of making almost 8x money, settled for such a low sale price.

I saw this graph without actually realizing there was trading volume under 10k - I thought it was some sort of processing glitch. Is there an estimation on the number of orders that were actually fulfilled below that price? Could be market manipulation or just some sort of error, but this is a zero sum game so someone made off with a lot of under valued coins, and someone else presumably lost a lot of money.

Trader error? This seems to be in line with what I asked above. If a trader can sell his bitcoin at a cheaper buy order like at $10K, then I can guess that it is manipulation between traders. I mean I can place a buy order of 100 bitcoin for $10K and I can sell another 100 bitcoin for a $10K order even though the bitcoin price is $66K. Is this possible?

We need to see that this happened in the spot market and not in futures market. If it happened in future's market then we could think of it as a exchange manipulation but on the spot market, this could be a mistake, someone accidently sold a lot of bitcoins on the market order.

However, the people whom orders are filled between 10000- 30,000$ must be in high profits. This is called luck.

I smell a rat! The flash crash did not happen in any other exchange except Binance US. It stayed there for at least a minute. The price was recovered to the current level immediately because the trade kept happening. Many people use market rate while buying and selling instead of using a limit order so definitely there was ine or more people who were benefited out of this flash crash.

Let's wait for Binance to come out with an explanation. It can be a system glitch as well but the there could be few beneficiaries to it. Shouldn't have happened!

It would seem very unlikely for someone to sell Bitcoin as such a price so it is likely either an error in the graph reporting or someone made an error when trying to price some Bitcoin to sell. It is a devastating error if someone accidentally mispriced it and possibly lost over 30 million dollars due to such a mistake. Maybe someone got their account hacked and the hacker wanted to unleash this into the market. There are so many possibilities but one end result is likely - someone lost out and others made some rather huge gains if it was genuine. Surprised Binance didn't jump into the deal to make their own profit quite frankly, considering their sketchy reputation.

I think this is not the first time bitcoin encountered a flash crash on Binance. Just a few months ago, something similar happened, and all trading activity was paused and orders were cancelled when the flash crash happened. A lot of people are thinking that what binance is doing is questionable, and I think so too, considering that this has happened far too many times already and that they have not installed preventive measures against such an event. All other exchange around the world do not experience such kind of flash crashes quite often compared to Binance, so what's happening within the exchange is, IMO, really something else.

It's unbelievable that things like this can happen, and I'm just curious what Binance will say about the whole case - or they will pretend that nothing happened? Yes, some were obviously very lucky in this case, but it is a pity that it cost us a drop in price and spoiled the good mood and the celebration of the new ATH...

Now that is something we don't get to see every other day in crypto market. Even I was quite surprised when I saw this news on Cointelegraph.
I immediately went to check Binance US and found that it is indeed true. But there are some points which we need to be aware of.

1. The Flash Crash happened only Binance US exchange. All other exchanges in binance global was not impacted in this flash crash.
2. The flash crash happened on a 1 minute candle which means withing 1 minute all the orders were executed and then the price was recovered.
3. The whale must have put a market order so that all orders were executed instantly.
4. There were buyers who had orders placed at such low price which is why the price went so low.

Those were some lucky bastards who got to buy BTC at such low price and get instant 6x profits.

What an insane flash crush this was. Completely unexpected and whoever had orders at that price (I'm not sure many people did) then this was a crazy historic moment never seen before.

Looking at the market now being at $63,000 it all just looks like nothing happened. Anyway, in a way sad I didn't have a low order but hey nobody could have seen this coming. And those that bagged some BTC at a crazy rate - good for you, right?

That's a shady thing happen on Binance US it's trending now on Reddit here https://www.reddit.com/r/BinanceUS/comments/qcql1a/what_just_happened_here/

The only users who make a profit are those who set buy orders at a lower price so if you have set a buy order at $10k then you already made a profit right now.
Other exchanges are not affected even on Binance.com so there is something happening on Binance US.

It's just like the same happens on Binance.com but the only difference is it's not a huge price down it increases way to $99k.

Is there any announcement from them?

I remember this also in our local wallet/exchange called Coins.ph before.  They drop all coins supported (BTC, BCH, ETH, and XRP) and it seems there are too many users who grab the chance to buy crypto in just a matter of minutes, it's pumped back.

As I can see, not only did Bitcoin has dropped the price, it's altcoins including BNB.


I think accumulating now is quite a good decision.

I think it makes no sense to sell him at such a low price even though he can profit from selling his bitcoins for that much in just 1 minute. There must be some traders who managed to get bitcoins at the low price at that time because they placed buy orders lower than the current price. But I wonder if this thing can be manipulated, I mean it was planned by the whale?

OP, are you sure this thread is on the correct board? I think a trading discussion board is much more appropriate for this thread.

I just saw it on the telegram news channel that I subscribed, Bitcoin mysteriously flash crashes below $10,000 in a minute period with a volume of 592.75BTC. I think a long time whale finally take profit on his long time investment. I wonder if anyone here using Binance.us and scoop some of cheap Bitcoin.

This reminds me that sometimes setting a too good to be true limit buy order might give a good fortune to those who will patiently wait.