Warning: How many of you Bears have ever been a victim of a Short Squeeze? - page 29.

DeathAndTaxes

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Gerald Davis

Quote from: cypherdoc on October 21, 2011, 11:05:23 AM

the other problem i see is how is Zhoutong going to get all these kid short sellers to send more USD to their underwater accts when they get in trouble and a clear uptrend in the price gets well established? he has no legal processes to enforce deadbeats in any way shape or form to recover his losses.

There is no "credit" extended. If you exceed marginal call you get your posistion closed to cover any negative balance. The only risk would be if a margin call and forced close couldn't happen fast enough.

cypherdoc

legendary

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this is great: https://bitcointalksearch.org/topic/m.530004

you or Zhoutong?

cypherdoc

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https://bitcointalksearch.org/topic/m.529645

Lol. imagine this happening in reverse. Grin

cypherdoc

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this is not a conversation. these posts are called warnings.

as i study Bitcoinica, i'm formulating a plan and that's a thought process. you will not be able to say you've not been warned.

BitMagic

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Dude, you having a conversation with yourself? Summarize it all and post in a new thread.

You sound like the crazy lady down the street (though I like where it's all going).

cypherdoc

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most market makers like Zhoutong will locate themselves on the exchange itself or co-locate their servers in the next room or next door to be able to efficiently send/receive data to the exchange so that they can rapidly respond to big shifts in price. HFT's anyone?

the fact that he communicates with mtgox just like the rest of us with all of our connection headaches of the last 6 mo, just imagine him trying to hedge when volatility sets in like it did in June? it'd be ugly.

cypherdoc

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the other problem i see is how is Zhoutong going to get all these kid short sellers to send more USD to their underwater accts when they get in trouble and a clear uptrend in the price gets well established? he has no legal processes to enforce deadbeats in any way shape or form to recover his losses.

cypherdoc

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i'm currently studying Zhoutong's model. my conclusion so far is that he's very over exposed. his accts are setup within mtgox AND he's complained about intermittent interruptions in his access to that same acct just like the rest of us. he's also admitted that he's not 100% hedged.

in a massive short squeeze, especially one where he can't get access to liquidate clients accts or hedge quickly enough, Bitcoinica will suffer massive losses. his problem is that mtgox's trading platform is outdated and not fast enough for a large ramp in the price.

now is not the time to be shorting. the bursts in price will come intermittently and unpredictably.

cypherdoc

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Quote from: tvbcof on October 21, 2011, 02:01:37 AM

Looks like it's over. Wrong timing and wrong scale is my take. Cleaned out a handful of wet-behind-the-ears starters maybe, but only big enough to instill a bit of caution into the majority of potential victims.

Now maybe we'll head down deep into the $1.nn's, and wait for the next go-around (and hopefully the last one in this phase.)

have you ever heard of waves my son?

cypherdoc

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Quote from: slothbag on October 21, 2011, 06:30:59 AM

cypherdoc, Bitcoin is pretty much tied to the USD at the moment.. if people want to get away from the USD why buy bitcoin? If I buy X amount of bitcoins with AUD and the USD falls, my bitcoins will buy back less AUD (because the exchange rate is based on the USD/AUD exchange rate)

b/c i think Bitcoin has bottomed. we are at sentiment lows and at the very final tip of a long measured descending wedge that has been created and significantly contributed to by short selling on Bitcoinica.

study your technical analysis. descending wedges, esp ones this well formed and long lasting, most likely break UP and HARD. this wasn't your typical tulip bulb crash ala straight down. this slow decline has been measured and manipulated. NOW is the time to buy if you believe in Bitcoin fundamentals and look at the facts objectively.

it would be easy to create a huge short squeeze here. i pity Zhoutong when it comes. all he is is a leveraged market maker go between from mtgox and short sellers. we could wipe him out.

anu

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RepuX - Enterprise Blockchain Protocol

Quote from: slothbag on October 21, 2011, 06:30:59 AM

cypherdoc, Bitcoin is pretty much tied to the USD at the moment.. if people want to get away from the USD why buy bitcoin? If I buy X amount of bitcoins with AUD and the USD falls, my bitcoins will buy back less AUD (because the exchange rate is based on the USD/AUD exchange rate)

Huh? Bitcoin fluctuates more in a day against the $ than $ flutuates in a year against any other real currency.

slothbag

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cypherdoc, Bitcoin is pretty much tied to the USD at the moment.. if people want to get away from the USD why buy bitcoin? If I buy X amount of bitcoins with AUD and the USD falls, my bitcoins will buy back less AUD (because the exchange rate is based on the USD/AUD exchange rate)

tvbcof

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Looks like it's over. Wrong timing and wrong scale is my take. Cleaned out a handful of wet-behind-the-ears starters maybe, but only big enough to instill a bit of caution into the majority of potential victims.

Now maybe we'll head down deep into the $1.nn's, and wait for the next go-around (and hopefully the last one in this phase.)

S3052

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Quote from: GoWest on October 20, 2011, 08:56:01 PM

One thing about this dip into the $2.xx range is that it brought out a metric ass-tonne of negative media attention. It was strange to watch, but suddenly all of the online media called the death of Bitcoin. If that's not a sign that the bottom is in, I don't know what is.

News are not leading price development, but news are lagging it. This means that you cannot rely on waiting for news to trade.

Cluster2k

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Looks like the rally to $2.70+ is fizzling.

sadpandatech

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Quote from: cypherdoc on October 20, 2011, 09:48:39 PM

the USD is weakening as we speak in after hours trading. that means USD leverage is looking for a place to go.

Aye, same thing in the Asian markets too right? I know they arn't buying lower end metal commodities today....

cypherdoc

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LOL!. Zhoutong is going to liquidate all of your short selling accounts w/o notice. he can't afford to consult you about it as the price rises. its either you or him Cheesy

cypherdoc

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the USD is weakening as we speak in after hours trading. that means USD leverage is looking for a place to go.

cypherdoc

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Quote from: zhoutong on October 18, 2011, 06:30:41 PM

Quote from: cypherdoc on October 18, 2011, 01:54:51 PM

i just want short sellers to realize that a short squeeze is a predatory manipulation meant to kill the short seller. if there's money to be made doing it, it will happen. and right now, there are alot of people offsides.

There's not enough benefit in this. Most short sellers were shorting since long ago. One of my customers has already made 230% profit. The recent crash only induced more long positions.

Short sellers are far from being liquidated because they have a lot of profits to back their positions.

these people with supposed large short selling profits are the first one's to cover out of fear. mostly b/c they're the smartest and aren't willing to give back the money. they in turn will drag all the weak handed shorts into covering as well creating a slaughter of enormous proportions. Bitcoinica needs to be careful.

cypherdoc

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Quote from: ineededausername on October 20, 2011, 09:17:32 PM

Honestly, the Bitcoin community is still very much an insular geek village. That'll change but not now, not yet. The current "rally" is clearly the manipulator.

you clearly don't understand WHO is here along with how much money they have.

all it takes is one or two millionaires to jam this market much higher.

Topic: Warning: How many of you Bears have ever been a victim of a Short Squeeze? - page 29. (Read 43772 times)