Could BTC-E dump be the result of a mistake?

wasserman99

sr. member

Activity: 476

Merit: 250

Quote from: Scott J on August 18, 2014, 01:38:38 PM

Quote from: AmazonStuff on August 18, 2014, 01:36:17 PM

Maybe someone pushed the wrong button or he knows something we don't know? What is your theory?

Even if they had insider information, there would be better ways to get out.

I can only see one logical reason to dump in one go - trying to move the price lower.

I would say the fact that whatever happened on btc-e was the inside information. A select few may or may not have traded in front of what was likely a large margin call on the exchange, but the fact that there was a margin call (or something else that caused the price to crash) was the cause of the crash, not the other way around.

falllling

member

Activity: 112

Merit: 10

nope, bitstamp will drop to lower than btce did, sell now to cut loose is the only way out

ElectricMucus

legendary

Activity: 1666

Merit: 1057

Marketing manager - GO MP

No.

Wandererfromthenorth

hero member

Activity: 742

Merit: 500

Quote from: MatTheCat on August 18, 2014, 02:57:26 PM

Quote from: Wandererfromthenorth on August 18, 2014, 02:24:13 PM

http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/

"Some people have questioned the validity of margin, and we want to definitively put those baseless claims to rest. This was not the result of margin calls, stop orders, forced liquidations or any other type of leverage. We had approximately 650 bitcoins sold as the result of margin calls, out of a total amount of sales during this time of around 9000 coins. That is roughly 7%. Hardly, the cause of the drop in price."
- John Rossi, Bitfinex.

So why then did the total margin on Bitfinex crash from 32M USD to 24M USD, John Rossi you fucking lying crook?

650 BTC of margin calls indeed! (and about 8K of stop orders no doubt).

Yep, seems to be the case :/

MatTheCat

hero member

Activity: 840

Merit: 1000

Quote from: Wandererfromthenorth on August 18, 2014, 02:24:13 PM

http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/

"Some people have questioned the validity of margin, and we want to definitively put those baseless claims to rest. This was not the result of margin calls, stop orders, forced liquidations or any other type of leverage. We had approximately 650 bitcoins sold as the result of margin calls, out of a total amount of sales during this time of around 9000 coins. That is roughly 7%. Hardly, the cause of the drop in price."
- John Rossi, Bitfinex.

So why then did the total margin on Bitfinex crash from 32M USD to 24M USD, John Rossi you fucking lying crook?

650 BTC of margin calls indeed! (and about 8K of stop orders no doubt).

haploid23

legendary

Activity: 812

Merit: 1002

Does anyone remember Klee's stolen and laundered coins? It was in the amount of 1k+ coins. Possibly his stolen coins were combined with other stolen coins from the same hacker, then dumped. Unlikely though. Then there's also Ethereum's dump of coins, in the 20k range.

But whatever the reason, the "mistake" was very real. My buy order that I put in a couple months ago finally got triggered and coins are confirmed in my wallet Cheesy

. Time to put in another dirt cheap buy order and hope for another fat-finger.

Wandererfromthenorth

hero member

Activity: 742

Merit: 500

2 Scenarios: Hacker with stolen coins, or manipulation for 30% INSTANT profits on HUGE positions.

1: A hacker with a lot of stolen coins that simply doesn't give a damn about BTC, he wants the USD that he gets selling his BTC, he lost his patience with this downtrend and decided to cash out everything at once, doesn't care if he gets a shitty price (30% less USD)

2: Manipulation (likely): https://www.youtube.com/watch?v=u0n1oelSSXA
"So someone made a manipulative sell of 1500 BTC and created this margin cascade.
With it, he's able to buy back the Bitcoins at 30% cheaper."

I'd say two, something similar happened with Bitfinex crashing to $450 few days ago, but Bitfinex implemented the new algorithm that tries to prevent this. As Bitfinex clearly said "we identified orders that were likely manipulative in nature"
http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/

njcarlos

sr. member

Activity: 280

Merit: 250

Quote from: FattyMcButterpants on August 18, 2014, 02:10:34 PM

you may have missed it already -- had some action on BFX the other night too. then again, this bear market is ugly, so you may be right and we may be in for more margin call surprises! Grin

Probably so, but if I don't act on the possibility I'll kick myself later Cheesy

FattyMcButterpants

sr. member

Activity: 448

Merit: 250

Quote from: njcarlos on August 18, 2014, 02:09:03 PM

Quote from: MatTheCat on August 18, 2014, 02:07:39 PM

a rather thin order book.

Why I'm wiring money in today. Not missing anymore of those massive BTCe sell-offs. The next ones will be when it counts.

you may have missed it already -- had some action on BFX the other night too. then again, this bear market is ugly, so you may be right and we may be in for more margin call surprises! Grin

njcarlos

sr. member

Activity: 280

Merit: 250

Quote from: MatTheCat on August 18, 2014, 02:07:39 PM

a rather thin order book.

Why I'm wiring money in today. Not missing anymore of those massive BTCe sell-offs. The next ones will be when it counts.

MatTheCat

hero member

Activity: 840

Merit: 1000

Quote from: Scott J on August 18, 2014, 01:38:38 PM

Even if they had insider information, there would be better ways to get out.

I can only see one logical reason to dump in one go - trying to move the price lower.

Isn't there leveraged long trading on BTC-e, cos that there looks like a leveraged long squeeze slicing right through a rather thin order book.

magicmexican

hero member

Activity: 812

Merit: 1000

Quote

How to protect your account from hacking

15.08.14 00:00 from admin
Dear participants of the BTC-e.com

The cases of hacking accounts with the use of viruses disguised as trade bots, trading platform, and also subscription for mailout, from which you may catch a virus if you follow a link in it, became more frequent.

maybe its relevant, (the trollbox was suggesting so), but i dont see why wouldnt u just withdraw stolen coins instead of trying to get fiat out.

FattyMcButterpants

sr. member

Activity: 448

Merit: 250

Quote from: howaboutya on August 18, 2014, 01:46:07 PM

Probably it was really a mistake, there's no reason to do a sell order at that price on a single exchange.

why don't you read some of the responses in the thread before blathering on like this? of course there are reasons, and very good ones....

howaboutya

newbie

Activity: 44

Merit: 0

Probably it was really a mistake, there's no reason to do a sell order at that price on a single exchange.

FattyMcButterpants

sr. member

Activity: 448

Merit: 250

Quote from: hd060053 on August 18, 2014, 01:41:52 PM

there are often fat fingers on BTC-e. also the last dump to 100 and the litecoin dump was an error.

an "error"? no, it wasn't. iirc, it was something like an 8k BTC dump that triggered a massive string of margin liquidations. it was real, people got margin called, and those with bids in the $100s got filled.

yeah, in a market like this, keep your bids low. Tongue

FattyMcButterpants

sr. member

Activity: 448

Merit: 250

Quote from: GreekBitcoin on August 18, 2014, 01:39:08 PM

I am thinking about why he didnt send to other exchanges too in order to sell at better price and instead dropped the price to 309 when other exchanges stayed above 460...

That makes me think it was a mistake or an error or something but who really knows...

he didnt dump to $309. i dont have the data, but my assumption from volume and price action is he dumped 1.5-2k coins, perhaps to $420-430 level, which triggered stops and margin calls, which handled the rest. by that time, he would have bids waiting below. cheap coins, baby.

hd060053

hero member

Activity: 601

Merit: 503

there are often fat fingers on BTC-e. also the last dump to 100 and the litecoin dump was an error.

FattyMcButterpants

sr. member

Activity: 448

Merit: 250

Quote from: AmazonStuff on August 18, 2014, 01:36:17 PM

Maybe someone pushed the wrong button or he knows something we don't know? What is your theory?

possibly a fat finger, but more likely an intentional dump to trigger stops and calls into bids in the $300s which are now being sold off. that would be my guess. whales know that squeezing longs is most profitable right now. bulls are all but dead it seems....

GreekBitcoin

legendary

Activity: 1428

Merit: 1001

getmonero.org

I am thinking about why he didnt send to other exchanges too in order to sell at better price and instead dropped the price to 309 when other exchanges stayed above 460...

That makes me think it was a mistake or an error or something but who really knows...

Scott J

legendary

Activity: 1792

Merit: 1000

Quote from: AmazonStuff on August 18, 2014, 01:36:17 PM

Maybe someone pushed the wrong button or he knows something we don't know? What is your theory?

Even if they had insider information, there would be better ways to get out.

I can only see one logical reason to dump in one go - trying to move the price lower.

Topic: Could BTC-E dump be the result of a mistake? (Read 1604 times)