$13: Ether Prices Plunge in GDAX Exchange Flash Crash

[bbc.reporter]

What happened here? Surely no one is that stupid enough to dump in the market and cause a big crash like this. Was it a fat fingered trading error? Maybe there was a glitch in the system and the exchange will not admit to it. But whatever it is, it is not as bad as what they make it look.



The steep decline, observed at roughly 20:30 UTC, had an outsized effect on the market for the digital token that powers the world's second-largest blockchain. Overall, the value of ether fell to this price after trading at as much as $365.79 earlier in the session, according to GDAX data.

As a result, the flash crash represented a more than 96% decline from the daily high.

The move was so severe that Coinbase, the US-based operator of the exchange, opted to disable trading of the ETH/USD pair and block withdrawals of ether.

Read in full http://www.coindesk.com/13-ethereum-ether-prices-plunge-2500-gdax-exchange-flash-crash/

[Tmdz]

Their system glitched and sold everyone's ethers right out of their wallets at fire sale discounts.

Read their twitter, people are freaking out cuz they lost thousands.

[chutchmcgillicutty]

that shit's pretty crazy. just gonna open up a $1000 limit buy at $1 per ETH and leave it there hoping that something like this happens again

[AmarO]

RIP

[vlom]

On 21 June 2017 at 12:30pm PT, a multimillion dollar market sell was placed on the GDAX ETH-USD order book. This resulted in orders being filled from $317.81 to $224.48, translating into a book slippage of 29.4%. This slippage started a cascade of approximately 800 stop loss orders and margin funding liquidations, causing ETH to temporarily trade as low as $0.10.

https://blog.gdax.com/eth-usd-trading-update-5d8142b5bdc1

i am really just a trading for fun trader. thats why i never was interested in this stop loss orders and margin funding liquidations-stuff. can anybody please explain what happened @gdax.

[benthach]

What happened here? Surely no one is that stupid enough to dump in the market and cause a big crash like this. Was it a fat fingered trading error? Maybe there was a glitch in the system and the exchange will not admit to it. But whatever it is, it is not as bad as what they make it look.



The steep decline, observed at roughly 20:30 UTC, had an outsized effect on the market for the digital token that powers the world's second-largest blockchain. Overall, the value of ether fell to this price after trading at as much as $365.79 earlier in the session, according to GDAX data.

As a result, the flash crash represented a more than 96% decline from the daily high.

The move was so severe that Coinbase, the US-based operator of the exchange, opted to disable trading of the ETH/USD pair and block withdrawals of ether.

Read in full http://www.coindesk.com/13-ethereum-ether-prices-plunge-2500-gdax-exchange-flash-crash/

It don't mean anything, Butterin Vetnlic can just fork with a click click, he can fork anytime to anyone he want using his piece of shzit network blockchain.
The problem is this piece of shzit can't handle the transactions like Bitcoin do and they have the nerve to FUD with bitcoin about it

[Spoetnik]

I bet my left nut the ETH foundation simply dumped more coins.
They can tell the public opinion is swaying in the other direction.
The FUD is sinking in to the NOOBS that showed up here not long ago.
And they know damn well the price is unrealistically inflated etc etc.

They have already dumped lots.

What concerns me even more is Coinbase freezing shit.
Do you all fathom how scammy that is ?

Simply because some coins are dumped they froze markets ?
WOW !

Coinbase is just as scammy as ETH in so many ways.
Who the hell do they think they are ?

You all see why the market caps are an illusion ?
IF you try and dump the coin will be frozen by CENTRALIZED EXCHANGES
..who are friends with dev's.

This same thing happened when the DAO took Ethereum down too.
Butters ASKED exchanges to freeze ETH before remember ?

This news with Coinbase just proves how much of a joke this stupid bullshit is.
Who the fuck are they to go and stop someone from dumping their coins ?

I wouldn't register at Coinbase with your email people LOL
They are scammy douche bags galore.
They refused to add Litecoin but were happy to add ETH the scam coin.
They also ratted out Artem from KickAssTorrents.. which got him arrested.

They also have done IPO crowd funding even though they are worth a billion+ plus and get millions in revenue.

The real story here is Coinbase are scammy little pieces of shit that need to be taken down a few thousand pegs and it will happen too !

Get this people !

Those scammy ass Coinbase fuckheads were more than happy to turn a blind eye to PAUL VERNON the owner of the exchange called CRYPTSY when he dumped vast amounts of stolen coins in the MILLIONS but they freeze this ETH shit now ? Gimme a break  

But they have lawyers sniffing at them hard and may be sued soon via class action etc. (related to Cryptsy)
And.. they are battling the IRS who want all tax records from TONS of users.
They lose ? then a lot of arrests could be made.

Speaking of which.. that may be the actual real reason why they froze the markets.
Govt intervention.
WHICH DOES HAPPEN !
Any of them that have a verified deal abide by US govt requests.
It's the very reason they do AML/KYC in the first place.

2nd in charge at Cryptsy told me how it worked before too.
Funny thing was i already told him many times on the Troll-Box they were doing it and i was laughed at.

It's simple the govt makes a request then the exchange freezes the users account then lies to them making up some excuse then they collect all the info they can on the user in question and hand it over to the fed's.

That happens all the time in crypto to naive idiots.

And THAT may be what happened here.

What was that again about your little DECENTRALIZED coin and exchange guys ?

So uhh what part was decentralized again ? The ETH ICO ? The Govt controlled Exchanges ? What ?

ALTCOINS  

[gokayc]

So bad situation those who put stop loss or who margin trade. These kind of situation is always may appear on trading. I've stopped using stop loss order long time ago since I lost some money for during similar situation with ETH on Gdax. If you are day trader better don't sleep before you finish your trade safely.

[Cassie.Jill]

it has nothing to do with GDAX, just because Ether is not the ture virtual currency like Bitcoin etc.

[Herbert2020]

no it is not a glitch if you look at the volume of that time also the trading history. people did sell their ethers by that time. it was because of a mass panic because of the failure of ethereum blockchain. so anybody who had any buy order on GDAX removed it so that made the buy support thin and then came the panic sell, which is practically a huge amount of ETH dumped on the already thin buy orderbook so it crashed the price easily to $13 but since it is a huge drop obviously everyone jumps in and automatic trades kick in also and buy it back up

[bbc.reporter]

@Herbert2020. Why did GDAX remove the buy orders before it could lock the sell orders? Why not suspend trading immediately on both the buy side and the sell side if they were so concerned?

Is the volume in GDAX that thin for this to happen?

[jono_t2000]

To say that a mass panic sell caused the price to drop down to 10cents is Bullshit.

This was an inside job by Vitalik and his team i am damn near certain about it.

I dont trust ETH whatsoever and I think they know their product is in big trouble.

Could it also be part of the reason they moved the Genesis block from ETH to ETC???

[Zenoru]

This was caused by a market sell of a few million dollars. It caused the price to drop so much that is triggered a cascading effect of stop losses (sell at market price) and forced liquidations of those who bought ethereum at margin.

As a result the entire buy order book was cleared almost instantly and actually dropped as low as $0.10.

Either someone fat fingered or the more likely explanation is stop-hunting. Look it up on investopedia. It's a legal strategy (though perhaps  somewhat unethical). Some whale probably saw eth price trending to $300 (nice round number where lots of people probably had stops or stop losses or may be liquidated) and did a market sell to profit (he may have shorted or had lots of cheap buy orders).

GDAX didn't have any glitch besides being unable to login at the time. However they also do not have circuit breakers (common in stock market to halt trading if prices change too much) - this is stated in their terms. Unfortunate incident, but this is the risk of margin trading on GDAX.

[ulhaq]

Was the price of ether on other exchanges affected because of this?

How does the stop loss work if the price cannot be realized? Eg, if someone placed a stop-loss at $240, but the multi-million dollar sell order dropped the price to $228 first (there must be an algorithm to determine order of selling), then does the $240 stop-loss get executed at $228? And so on?

Are stop-loss orders public? If so, a big trader could intentionally make a big sell order to drop the price on a particular exchange, but if stop-loss orders are not known, then they are not going to be benefitting because they would simply take a big loss on the sell order. 

[wilson_bitbybit]

Those who bought ETH at 10 cents are really lucky, but a lot of damage has been done. Is it true that gdax is reimbursing customers who got burnt with margin and stop loss features?