let me start at the root aspect with some honest questions:
Do you think this event improves your image to current and prospective customers ?
Do you think overall customers feel this was event is fair ?
Do you even consider this an "event" worth handling ?
Conversation
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?
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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.
A rare edge case today may become commonplace in the future, especially as the market gets bigger. Just because something worked as intended doesn't mean it's the best way it can be done.