okex will be forced to sell 415 million worth of btc at market, this will force everything down causing long liquidations across and leverage crypto markets. this inturn will turn market sentiment to full bear.
panic shorts will enter and btc will continue dropping. wash trade exchanges will close shop
in 72 hours media reports will flood with the death of btc and no one will want it.
okex is about to cause a mt gox event and the meme charts comparing 2014 bear market to the 2018 market will come true.
I might be wrong but they arent actually selling shit, shorters just take a percentage loss across the board in a Bernie Sanders-esque clawback system. if anything people stop using okex.
am i wrong?
Eli Green
moron learn about futures before talking out of your ass
Luis Wright
He fell for the okex fud.
Bentley Bell
You dumbass they're not selling anything. They'll just be forced to give the bears less profit. Okex will lose its credibility and probably die deservedly so for taking away earned money. Other than that, there's no direct impact on price.
Oliver Davis
you realize this is already priced into the market right? thats what this puny 5% loss is
bitcoin stonk
Leo White
1 hour
make this thread #1 so fwens know what time its going down
liquidation of 415M long position on Okex. Imagine what'll happen to orderbook in Okex :(
Ayden Perry
Dumb
Daniel Reyes
Thanks. Brainlet here. Does that mean Somone has to SELL BTC. But if they are liquidated doesn't that mean someone has to BUY 435m of BTC? Won't that push the price UP?
Matthew Bailey
it means nothing
the BTC goes on the book at the liquidation price. its just a sell wall. if it isn't filled at the liquidation price, the loaners will just get what they get.
Jordan Ross
>someone has to BUY 435m of BTC yes.. no where the fuck are you going to find $435 mill to fill the sell order. If no one fills the order then it just sells and sells and sells
Robert Williams
Did they freeze futures accounts right after the liquidation? Although there's a counter party to every position, I'm not quite sure what happens if people closed their positions and fled the exchange back up around 7800 or so.
Gabriel Perez
Is there a X time limit on when they need to sell by?
Could they not sell it at $7000, raise the money and then pay the difference from their own pockets
Or does it HAVE to be at $78xx
Daniel Young
In theory I think it shouldn't cause problems. The problem is crypto exchanges are always up to crazy schemes, if okex were market making on their own exchange they could be the counter party to much of it. It would cost them about 43 million at current prices. If it's spread out over thousands of users that went short it's less of an issue. I think it's more likely either okex or some chinese miner holds the bulk of the counter party and is going to get hit hard. Hopefully it was Jihan hedging his mining and he loses 40m.
Josiah Mitchell
yea, if it doesn't fill then the shorts eat the losses
honestly this is super bullish. the shorts got JUSTed hard, it will discourage shorting going forward. he who shorts the corn pays the toll
Nathaniel Howard
profits are unrealized until settlement, you can't withdraw your closed position until settlement, you'll still get the clawback
Wyatt Gray
Is there actually enough BTC on okex to fill it though? The problem is the further BTC drops the more BTC required to clear the same 400m order. They will still need someone to deposit more BTC into their trading account, if people flee the exchange there can be trouble.
the long (had) BTC in "their custody," but liquidation means okex gets it, sells, and gives $$$ to the shorts
if the sale yields only $200M, the shorts just get a 50% hair cut. there is no need for "more" BTC. there is no squeeze play like that. shorts just get rekt, as they should.
To reduce the market risks induced by this incident, the following actions will be executed: Injecting 2500 BTC from OKEx’s own capital pool into the insurance fund. During the settlement at 4pm August 3, 2018 (HKT), if any attempts of malicious manipulation of the settlement price are found, we will delay the settlement process for 10 minutes and manually adjust the price back into a reasonable level before delivery or settlement. The account which made the malicious attempt will be suspended immediately.
Jose Ross
WHAT DOES THIS MEAN!?!?!?!?! I WANT 1K BTC SO FUCKIN BAD AND I ALSO WANT SHORTERS TO GET REKT
William Price
It means we win and renko faggot gets rekt. 10k here we come.
Julian Butler
>if okex were market making on their own exchange >I think it's more likely either okex or some chinese miner holds the bulk of the counter party and is going to get hit hard
how the FUCK is it legal for them to market make on their OWN EXCHANGE? they ca manipulate the fuck out of positions hunting shorts/longs
>how the FUCK is it legal for them to market make on their OWN EXCHANGE? they ca manipulate the fuck out of positions hunting shorts/longs Unregulated markets, all the exchanges do it, alt-coin exchanges are the worst, when you're trading alts you're just trading against the exchanges who can manipulate the price as they please. Sometimes when they claim they don't do it technically they have a separate company that runs their trading desk but still gets full access to data.
