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Topic: Naked Short Selling - page 2. (Read 2066 times)

hero member
Activity: 1106
Merit: 500
Life is short, practice empathy in your life
May 04, 2014, 06:52:21 PM
#4
I would bet my bottom dollar that this goes down on Bitfinex. Insiders only of course.

Chinese exchanges like Huobi are more likely to be doing this as using BTC exchanges as 'banks'/wallets is more common in China than the West. It must be really tempting for Huobi operators to short sell dormant coins on insider news.
hero member
Activity: 728
Merit: 500
May 04, 2014, 06:47:45 PM
#3
It would be impossible for an exchange to dispense more coins out into the network than it actually owns. Any naked shorting would be with fictional coins that exist only on its own order books, but they would eventually run out of coins that the customers can actually withdraw.

arbitrage forces would fail to drop the price on other exchanges  from that exchange once coins can no longer be withdrawn.
hero member
Activity: 840
Merit: 1000
May 04, 2014, 06:45:38 PM
#2
How transparent are Bitcoin exchanges with regards to delivery of BTC being shorted?  Have we looked into the potential for naked short selling, which would involve the allowance of infinite short selling, to the point of selling more BTC than even exists?

http://en.wikipedia.org/wiki/Naked_short_selling


I would bet my bottom dollar that this goes down on Bitfinex. Insiders only of course.
sr. member
Activity: 364
Merit: 250
May 04, 2014, 06:40:44 PM
#1
How transparent are Bitcoin exchanges with regards to delivery of BTC being shorted?  Have we looked into the potential for naked short selling, which would involve the allowance of infinite short selling, to the point of selling more BTC than even exists?

http://en.wikipedia.org/wiki/Naked_short_selling
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