OKex limits the size of market orders and forces multiple orders and/or limit orders based on the thickness of the book, some of these things have been honed and polished up for years I am more turned off by the lack of concern from Jesse, I guess to him it isn't an issue ?
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We do the same but if you jump through the hoops and want to dump anyway, we don't stop you. Should we?
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1. No, 2. Yes (someone took the other side of every trade) but I'm sure people who sold at a price lower than the current best bid would prefer a do-over, 3. what would "handling" it be? Everything appears to have operated as expected. The event was entirely predictable.
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I would like to see a change to use a market price based on the entire market instead of kraken only when triggering liquidations. The system worked far from expected as no one was able to place market orders to buy the dip on time like they did on other exchanges.
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Furthermore, who do you think we're the people on the other side of the trades? This seemed coordinated as only prexisting buy orders were really able to profit from this.
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The price bounced so fast that you wouldn't really have been able to react to it. Pretty much only orders that were there from before got filled. Just because the price touches a point doesn't mean that there's more for sale there when new buyers come in.
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I'm not so sure about that, I think 8-12 minutes is enough time.
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tall candles means bids were getting in to absorb the selling over that period.
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Jessie... you had a cascading flash crash on your platform because of margin. Your customers deserve better than this.
My inbox is open if you\your team doesn't know what happened. Because if I'm honest, the way you're approaching this I'm not sure if you do know what happened.
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Certainly looks like that. By "deserve better", do you mean that Kraken should review every order before it's placed, make sure the trader understands how markets work and what they're doing?
Clearing houses are required to place trades on the market when internal prices go below market value to prevent this exact event. I imagine most investors would expect an exchange to do the same.
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And is Kraken a clearing house?
An exchange is its own market.
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The point is that there are certain efficiencies you could work on or limits you could consider implementing (differently) that would prevent this kind of thing from happening (to some extent) in the future.
Understanding exactly how and why it happened is the first step.
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Maybe. There are tradeoffs, pros/cons with everything. Different isn't always better. You might create new, bigger problems in trying to solve for some rare edge case. We may never know why there was a lot of selling across all the markets today. How: people placed orders.
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I think having a cascading margin flash crash on every pair that has margin trading is a problem, do you?
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