OKEX illegally liquidated a Chinese man's $10M worth of Bitcoin

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: Seetheummerallyeah on March 30, 2018, 01:52:54 AM

Context: The bottle he was holding was Dichlorvos (a banned pesticide). He threatened the CEO of #Okex that he will drink it right in front of him. This man lost his 8 months old child, and his wife wanted to divorce him for losing all these money. The "illegality“ here was due to OKEx futures price crashing 30%-40% more than every other margin exchange, when spot price merely went down by 5%. This greatly reduced "leeway" and made liquidation inevitable. In the case today, spot price went from $7,200 to $6,900, while Okex quarterlies futures price crashed to a low of $4,800. You will get liquidated regardless. How can this be normal?

I don't believe a single word from this "tragedy".

First, how do you lose a 8 months child because of loses on an exchange?
How??? He didn't have any money left to feed him? This while having 10 millions $ on an exchange?
Common, this is so stupid it can't be real.

Also, his wife "wanted" , notice the word? "wanted" , but she didn't.
And the reason would have been the money lost, not the child's death.

Quote

Thoughts on this? Honestly some pretty crazy stuff and its unacceptable how the price of BTC on a large exchange like OKEX managed to go down to $4800 when it was $7000 everywhere else (automatically liquidating all future contracts

People trading on a website that has been accused every single day of faking volume and prices should know better.
Maybe some will learn a lesson....

Seetheummerallyeah

member

Activity: 280

Merit: 41

Quote from: Xester on March 30, 2018, 01:57:31 AM

Quote from: Seetheummerallyeah on March 30, 2018, 01:52:54 AM

Video at OKEX office: https://twitter.com/8bitandstuff/status/979488349038592001

Context: The bottle he was holding was Dichlorvos (a banned pesticide). He threatened the CEO of #Okex that he will drink it right in front of him. This man lost his 8 months old child, and his wife wanted to divorce him for losing all these money. The "illegality“ here was due to OKEx futures price crashing 30%-40% more than every other margin exchange, when spot price merely went down by 5%. This greatly reduced "leeway" and made liquidation inevitable. In the case today, spot price went from $7,200 to $6,900, while Okex quarterlies futures price crashed to a low of $4,800. You will get liquidated regardless. How can this be normal?

OKEX Response: OKEX ended up rolling back all future contracts as a result of the pricing error.
Source: https://support.okex.com/hc/en-us/articles/360002279012

Thoughts on this? Honestly some pretty crazy stuff and its unacceptable how the price of BTC on a large exchange like OKEX managed to go down to $4800 when it was $7000 everywhere else (automatically liquidating all future contracts

Every exchanges has its own market and those market moves differently. Though most of the times they have a little difference in gaps but there are times when the gaps are really high. What happened to OKEX is very possible since the movement of the trade depends on the buy and sale. The man on the other hand cannot blame OKEX but himself. But he has nothing to worry about all he need to do is wait for the price to go back up again.

That would be the case if he had $10 million in bitcoin. He had $10 million in bitcoin FUTURES, which is basically the opposite of a short. When the price went down to $4900 his contract was liquidated meaning he loses it all. At the end of the day OKEX ended up reversing all contracts so his contracts are still in play.

Xester

hero member

Activity: 994

Merit: 544

Quote from: Seetheummerallyeah on March 30, 2018, 01:52:54 AM

Video at OKEX office: https://twitter.com/8bitandstuff/status/979488349038592001

Context: The bottle he was holding was Dichlorvos (a banned pesticide). He threatened the CEO of #Okex that he will drink it right in front of him. This man lost his 8 months old child, and his wife wanted to divorce him for losing all these money. The "illegality“ here was due to OKEx futures price crashing 30%-40% more than every other margin exchange, when spot price merely went down by 5%. This greatly reduced "leeway" and made liquidation inevitable. In the case today, spot price went from $7,200 to $6,900, while Okex quarterlies futures price crashed to a low of $4,800. You will get liquidated regardless. How can this be normal?

OKEX Response: OKEX ended up rolling back all future contracts as a result of the pricing error.
Source: https://support.okex.com/hc/en-us/articles/360002279012

Thoughts on this? Honestly some pretty crazy stuff and its unacceptable how the price of BTC on a large exchange like OKEX managed to go down to $4800 when it was $7000 everywhere else (automatically liquidating all future contracts

Every exchanges has its own market and those market moves differently. Though most of the times they have a little difference in gaps but there are times when the gaps are really high. What happened to OKEX is very possible since the movement of the trade depends on the buy and sale. The man on the other hand cannot blame OKEX but himself. But he has nothing to worry about all he need to do is wait for the price to go back up again.

Seetheummerallyeah

member

Activity: 280

Merit: 41

Video at OKEX office: https://twitter.com/8bitandstuff/status/979488349038592001

Context: The bottle he was holding was Dichlorvos (a banned pesticide). He threatened the CEO of #Okex that he will drink it right in front of him. This man lost his 8 months old child, and his wife wanted to divorce him for losing all these money. The "illegality“ here was due to OKEx futures price crashing 30%-40% more than every other margin exchange, when spot price merely went down by 5%. This greatly reduced "leeway" and made liquidation inevitable. In the case today, spot price went from $7,200 to $6,900, while Okex quarterlies futures price crashed to a low of $4,800. You will get liquidated regardless. How can this be normal?

OKEX Response: OKEX ended up rolling back all future contracts as a result of the pricing error.
Source: https://support.okex.com/hc/en-us/articles/360002279012

Thoughts on this? Honestly some pretty crazy stuff and its unacceptable how the price of BTC on a large exchange like OKEX managed to go down to $4800 when it was $7000 everywhere else (automatically liquidating all future contracts

Topic: OKEX illegally liquidated a Chinese man's $10M worth of Bitcoin (Read 104 times)