Binance Manipulative Wick in BNB/AUD Pair

[JohnBitCo]

We all witness a big market crash yesterday but look what happened in the BNB/AUD pair. How can the market dumped to 5.7 AUD. I think this was another manipulation by the exchange or do you think it was a mistake only ?

[franky1]

short answer is. if binance has very very little amount of traders. then a big trader can dump all the orders down without very much spent.

and yes that chart is using a 'view' not of 1btc value but say 0.01 value, which means
AUD: 499 - 5.7 (0.01btc view)  = AUD: 49999 - 570 (1btc view)  = USD: $35.8k - $409 (1btc view)
yep a steep drop from ~$36k to $0.4k (ouch for sellers, but great discount for a lucky buyer)

this is another reason why central walls street stock markets are not volatile. because millions of people are putting large orders in so the price can only move by penny amounts as the 'wall' is soo deep

but because there are dozens of exchanges meaning the pool of a few hundred thousand traders are diluted to a few dozen thousand traders per exchange. then diluted again per currency paid(USD, AUD, USDT, USDC) this makes the market order 'walls' thin.

simple numbers
EG if there were 120 traders per orderline selling 0.01btc but having to sell on one central exchange. each orderline would be 1.2btc deep
but if there were 24 exchanges meaning only 5 traders per exchange then it not only would be 0.05 deep. but someone can easily eat up several price points with just 0.5btc

demo example:

populated exchange                                diluted exchange
$35,800.00     1.2btc                              $35,800.00     0.05btc  
$35,799.99     1.2btc                              $35,079.95     0.05btc
$35.799.98     1.2btc                              $34.699.98     0.05btc
                                                              ...22 orders later.....
                                                             $409.99         0.05btc

as you can see on populated exchange someone buying 1.2btc will only shift the price by 1cent
as you can see on diluted exchange someone buying 0.15btc will shift the price by $1100
as you can see on diluted exchange someone buying 1.2btc will shift the price by $thousands($35.4k dump in example)

..
back in the days. when there was only 3 main exchanges and just all arbitraging one currency pair. the 'walls' were 1000btc deep per orderline. with 1cent intervals. but now its like 0.01btc deep with upto $3 intervals on the popular exchanges.
the intervals are worse on the even more unpopular exchanges

your screen shot shows how lacking it is of order amounts. it only needed $16,000(AUD) to drop the price 499 to 5.7 on that market pair

[Tytanowy Janusz]

We all witness a big market crash yesterday but look what happened in the BNB/AUD pair. How can the market dumped to 5.7 AUD. I think this was another manipulation by the exchange or do you think it was a mistake only ?

BNB/USDT trading pair daily volume  = 600 mln $
BNB/AUD trading volume = 2.9 mln AUD = 2.1 mln $

So BNB/AUD trading pair is like 300 times less liquid. To prove that whole crash volume was around 5000 BNB = 1.7 mln$

So it was most likely fat finger mistake of a whale who market dumped 2 mln $ woth of BNB but used wrong, illiquid trading pair to do that creating this massive flash crash.

[bhadz]

I wouldn't just suspect binance only if that happens. As said by them, it could be someone who did a mistake or does a manipulation on his own. These whales can do the trick if they see the pair that they're trading isn't too liquid at all. But if you want to get an appropriate answer, you can try reporting this to them but I guess you'll going to doubt what they're going to answer.

[noorman0]

Not manipulation, this often happens if the market price drops deeply to near the strongest support area. Whales can set a conditional order to dump all their coins at the same time resulting in a massive sale. And BNB><AUD is not the main trading pair on Binance, the volume may not be as liquid as guys described above me.
Something similar happened today on the Bitstamp exchange for the BTC><USD pair, and that's also not manipulation in my opinion.


Btw, I've benefited from this moment on another exchange.

[Bitcoin_Arena]

Lol, so does a long wick always signify manipulation by an exchange?

Absolutely no. I would advise understanding how the buy and sell orders work plus the order book depth and how large buy or sell orders can lead to flash spikes or flash crashes respectively.
So that you stop putting all the blame on exchange manipulation always.