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Topic: bitcoinica's fraud actions (Read 4839 times)

hero member
Activity: 532
Merit: 500
March 21, 2012, 05:24:55 PM
#44
Zhoutong, wouldn't it help your liquidity if you could increase order & trade frequency? I'm sure that would be a natural result if you could find a way to decrease the spread some. I know I'd be able to trade more - a $0.10 - $0.20 spread inside a $0.12 - $0.15 trading range doesn't leave much room to trade  (unless you're trading huge, probably over-leveraged positions)

I understand that with as much leverage as you extend your customers, you have to protect yourself from significant swings, too.

I also have to wonder if maybe you ought to raise the  requirements for BTC held in the currency account - severe fluctuations in the spot price of BTC/USD send heavily leveraged accounts holding (mostly) BTC spiraling down. It is often not wise to leverage the purchase of a risky asset with more of that same asset.

I have to admit, I cussed your pricing bot the other day, too - slippage was IMO, pretty steep. But I looked back through the books, and slippage the other direction was just as steep - a dead even wash from how I see it. I'm sure it could use some improvements, but that won't help with the fundamental issue of BTC holders being overleveraged.
hero member
Activity: 532
Merit: 500
March 18, 2012, 03:01:27 PM
#43

vip
Activity: 490
Merit: 502
March 17, 2012, 06:37:47 PM
#42
However, we respect your freedom of trading.
then remove leverage limitations

It's for protection of ourselves. We can't liquidate a 40,000 BTC position with 4% margin requirement.

If we increase the margin requirement to the likely slippage amount, then 10:1 will instantly result in margin call.
that make sense but current situation cant go on much time because using 2.5 and paying this spreads and on top of that you can add that order refresh rate is way to slow(one refresh per second can be awesome but i dont know how the server will tank that) or the chunk set 50btc is way to little, there is not much point in having many bitcoins on bitcoinica

We are improving the system to provide dynamic liquidity instead of the fixed 50 btc.

Thanks for the comments!
newbie
Activity: 40
Merit: 0
March 17, 2012, 01:27:45 PM
#41
fulfilling unreasonable requests isn't a sustainable measure of customer service.

That's all that really needed to be said. Wink
vip
Activity: 490
Merit: 502
March 17, 2012, 09:19:24 AM
#40
My advice: go ahead with what you're doing until you realize you're wrong.

We really want to serve our customers in the best possible way we can, but really unfortunately, fulfilling unreasonable requests isn't a sustainable measure of customer service.

Again, we make profits regardless of your profits and losses. We lose money (or potential profit) in two cases:

1. Someone is unhappy about Bitcoinica and left us.
2. We're unable to liquidate a huge position in case of market volatility and result in negative balances (which are permanent debts 90% of the time).

What we have always been doing is to reduce these situations as much as possible.

EDIT:

Generally, it's obvious that the more people making profits on Bitcoinica, the better for everyone. We're never against you.
vip
Activity: 490
Merit: 502
March 17, 2012, 09:08:32 AM
#39
However, we respect your freedom of trading.
then remove leverage limitations

It's for protection of ourselves. We can't liquidate a 40,000 BTC position with 4% margin requirement.

If we increase the margin requirement to the likely slippage amount, then 10:1 will instantly result in margin call.
hero member
Activity: 588
Merit: 500
Hero VIP ultra official trusted super staff puppet
March 17, 2012, 08:06:45 AM
#38
"you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard."

What if not enough. ask yourself would you pay 50k$-60k$-150k$ for this mistake ?
I dont think so. you would never do it until you get some insider Information.

Wait, but didn't you post insider information - that is, your position?  That's all the information that was needed to know how to liquidate you.  Whoever did it was smart enough to complete the transaction and close their leveraged positions before posting about it, and they got your money.  Sorry bro.

And his lack of response is not from his teddy bear advising him to remain silent. (It's because he knows he's wrong.)
legendary
Activity: 2198
Merit: 1311
March 17, 2012, 08:03:51 AM
#37
"you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard."

What if not enough. ask yourself would you pay 50k$-60k$-150k$ for this mistake ?
I dont think so. you would never do it until you get some insider Information.

Wait, but didn't you post insider information - that is, your position?  That's all the information that was needed to know how to liquidate you.  Whoever did it was smart enough to complete the transaction and close their leveraged positions before posting about it, and they got your money.  Sorry bro.
full member
Activity: 186
Merit: 100
March 17, 2012, 07:51:59 AM
#36
I dont use bitcoinica, and never will. However, i do wonder how you made so much profit in so little time, i mean 40k in a hot wallet is pretty crazy profit right?
legendary
Activity: 1358
Merit: 1002
March 17, 2012, 07:00:16 AM
#35
WAIT! We can sue others and make them pay for our own stupidity?!?!?  Shocked

brb, have a couple lawsuits to file...
vip
Activity: 490
Merit: 502
March 17, 2012, 06:59:58 AM
#34
Someone had enough money to move all of mtgox by $2 within a short time window around that period. You can't predict how much bitcoinica hedges, but if you move the mtgox price by $2 (up and down), you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard.

It wasn't as if there wasn't notice - this thread three days beforehand in the speculation topic;

Could I drive up the Bitcoin price with a clearing purchase?
https://bitcointalksearch.org/topic/m.793859

anyone with that much leverage and amount should be constantly watching the forums and taking into account actions such as the above. Even if he didn't make that purchase in the end, someone did.

marked





That's me Smiley

We never advocate excessive leverage and deliberate squeeze.

Forced liquidations do not contribute to the long-term growth of the Bitcoinica platform at all. So we won't partner with anyone who is interested in squeezing other customers either.

However, we respect your freedom of trading. You're welcome to utilize Bitcoinica for your Bitcoin investments.

At the same time, we want to warn everyone with a large amount of leverage to watch out for market risks.
newbie
Activity: 42
Merit: 0
March 17, 2012, 06:12:42 AM
#33
Someone had enough money to move all of mtgox by $2 within a short time window around that period. You can't predict how much bitcoinica hedges, but if you move the mtgox price by $2 (up and down), you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard.

It wasn't as if there wasn't notice - this thread three days beforehand in the speculation topic;

Could I drive up the Bitcoin price with a clearing purchase?
https://bitcointalksearch.org/topic/m.793859

anyone with that much leverage and amount should be constantly watching the forums and taking into account actions such as the above. Even if he didn't make that purchase in the end, someone did.

marked





That's me Smiley
full member
Activity: 168
Merit: 100
March 17, 2012, 05:28:39 AM
#32
Someone had enough money to move all of mtgox by $2 within a short time window around that period. You can't predict how much bitcoinica hedges, but if you move the mtgox price by $2 (up and down), you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard.

It wasn't as if there wasn't notice - this thread three days beforehand in the speculation topic;

Could I drive up the Bitcoin price with a clearing purchase?
https://bitcointalksearch.org/topic/m.793859

anyone with that much leverage and amount should be constantly watching the forums and taking into account actions such as the above. Even if he didn't make that purchase in the end, someone did.

marked



legendary
Activity: 1288
Merit: 1227
Away on an extended break
March 17, 2012, 04:52:51 AM
#31

Okay, meelba, let me start off by saying




Bad Mr. Teacher. How is ur FPGA by BFL in Seoul ? wasnt it contraband ?

Aww. You're handicapped, aren't you?

Check this out.

I can do a search for my name and find 20 references to being a teacher, what I've bought in the past 10 months, and all of my businesses, even my home address! Not impressive faggot.

(Also, lol@thinking I'm a teacher still. That was sufficiently years ago now.)

Now go on about your idiotic non-lawsuit which is not happening anywhere other than your imagination while I finish getting my dick sucked by another model who claimed she'd never have sex before marriage.  Roll Eyes


EDIT: Back on topic:

Quote
After Zhou stole my 30k$ (trading against clients) I have succeded with my lawer on opening a criminal case against him.

Has your lawyer / teddy bear dressed in her sunday best at your imaginary tea party told you yet that in a lawsuit you need evidence? I haven't seen any yet.

Also, you're going to get a huge surprise if and when you actually do try to sue Bitcoinica. You'll find out soon enough.

Shh, you're going to spoil the fun.
hero member
Activity: 602
Merit: 508
Firstbits: 1waspoza
March 17, 2012, 04:48:20 AM
#30
hero member
Activity: 588
Merit: 500
Hero VIP ultra official trusted super staff puppet
March 17, 2012, 03:19:53 AM
#29

Okay, meelba, let me start off by saying




Bad Mr. Teacher. How is ur FPGA by BFL in Seoul ? wasnt it contraband ?

Aww. You're handicapped, aren't you?

Check this out.

I can do a search for my name and find 20 references to being a teacher, what I've bought in the past 10 months, and all of my businesses, even my home address! Not impressive faggot.

(Also, lol@thinking I'm a teacher still. That was sufficiently years ago now.)

Now go on about your idiotic non-lawsuit which is not happening anywhere other than your imagination.


EDIT: Back on topic:

Quote
After Zhou stole my 30k$ (trading against clients) I have succeded with my lawer on opening a criminal case against him.

Has your lawyer / teddy bear dressed in her sunday best at your imaginary tea party told you yet that in a lawsuit you need evidence? I haven't seen any yet.

Also, you're going to get a huge surprise if and when you actually do try to sue Bitcoinica. You'll find out soon enough.
member
Activity: 67
Merit: 10
March 17, 2012, 03:13:13 AM
#28
Okay, meelba, let me start off by saying




Bad Mr. Teacher. How is ur FPGA by BFL in Seoul ? wasnt it contraband ?
hero member
Activity: 588
Merit: 500
Hero VIP ultra official trusted super staff puppet
March 17, 2012, 03:08:42 AM
#27
Okay, meelba, let me start off by saying

donator
Activity: 266
Merit: 252
I'm actually a pineapple
March 17, 2012, 02:54:59 AM
#26
"you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard."

What if not enough. ask yourself would you pay 50k$-60k$-150k$ for this mistake ?
I dont think so. you would never do it until you get some insider Information.

It wasn't just about you.
member
Activity: 67
Merit: 10
March 17, 2012, 02:39:47 AM
#25
"you can be pretty sure a lot of leveraged positions (in both directions) are going to get fucked hard."

What if not enough. ask yourself would you pay 50k$-60k$-150k$ for this mistake ?
I dont think so. you would never do it until you get some insider Information.
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