Shorts on Bitfinex at a all time high!

[Morecoin Freeman]

I have new shorts opened at 225 and old ones at 254 both on 20x

I only have 400 open at 225, 700 at 254

Ok, then you might not like what is going to happen in the next couple of hours (price is at $226 per coin as we speak).

[Shatoshi]

Why so sure?

[molecular]

I have new shorts opened at 225 and old ones at 254 both on 20x

I only have 400 open at 225, 700 at 254

20x leverage??

Can I ask what price your lower short (@225) would be liquidated should the price rise?

[Morecoin Freeman]

Why so sure?

 

[damiano]

I have new shorts opened at 225 and old ones at 254 both on 20x

I only have 400 open at 225, 700 at 254

20x leverage??

Can I ask what price your lower short (@225) would be liquidated should the price rise?

About 236ish without buying more

[damiano]

I have new shorts opened at 225 and old ones at 254 both on 20x

I only have 400 open at 225, 700 at 254

Ok, then you might not like what is going to happen in the next couple of hours (price is at $226 per coin as we speak).

Just like on Thursday right?  You do know that was a manipulation show correct?  Same show was on Wednesday as well. 

[hyphymikey]

Over 30K shorts. There isn't enough coins for sale to close those shorts out. If they cascade close we could see million dollar coins!

This makes me realize shorters are not smart.

[Shatoshi]

What the hell are you talking about.

[fonzie]

What the hell are you talking about.

Shhht, he smart. You should not disturb him while he is using his bitcoiner brain to find new possibilities on how to get BTC above 300 again.

[hyphymikey]

To close out those shorts coins have to be bought back. They have around 20K coins on finex for sell. It was a joke about million dollar coins, but just wanted to point out there are more shorts than can be closed. Or am I missing something?

If I borrow something and sell it, and then I have to buy back in able to return what I sold but there isn't enough out there no matter the price, what do I do?

Also, I don't need bitcoin to be above 300. I want as many coins as possible, shorters are helping me accumulate. But seeing the order books I would not short myself.

[gotmilk_]

To close out those shorts coins have to be bought back. They have around 20K coins on finex for sell. It was a joke about million dollar coins, but just wanted to point out there are more shorts than can be closed. Or am I missing something?

If I borrow something and sell it, then I have to return what I sold but there isn't enough out there no matter the price, what do I do?

I don't need bitcoin to be above 300. I want as many coins as possible, shorters are helping me accumulate. But seeing the order books I would no short myself.

Question is... Are we looking at new MtGox?

[fonzie]

They would close into the 100k+ BTC that have been opened as longs.and need to close at some point..

However, sooner or later Bitfinex will implode and bulls and bears will get burned at the same time.

[hyphymikey]

They would close into the 100k+ BTC that have been opened as longs...

However, sooner or later Bitfinex will implode and bulls and bears will get burned at the same time.

You mean they would buy back from the open longs that MIGHT be for sale? Hopefully somebody is closing their long in the price range before you get margin called. If it's cascading you won't even have a chance. 

Not worth the risk if you ask me.

[darlidada]

They would close into the 100k+ BTC that have been opened as longs.and need to close at some point..

However, sooner or later Bitfinex will implode and bulls and bears will get burned at the same time.

how will it implode?

[damiano]

To close out those shorts coins have to be bought back. They have around 20K coins on finex for sell. It was a joke about million dollar coins, but just wanted to point out there are more shorts than can be closed. Or am I missing something?

If I borrow something and sell it, and then I have to buy back in able to return what I sold but there isn't enough out there no matter the price, what do I do?

Also, I don't need bitcoin to be above 300. I want as many coins as possible, shorters are helping me accumulate. But seeing the order books I would not short myself.

The same can easily be stated for those longs being margin called,  not enough bids.  price would also implode

[fonzie]

They would close into the 100k+ BTC that have been opened as longs.and need to close at some point..

However, sooner or later Bitfinex will implode and bulls and bears will get burned at the same time.

how will it implode?

Due to the fact that longs can be opened with BTC as collateral. The lower BTC/USD price gets the more dangerous it becomes. I explained the situation a few weeks ago, I'm too lazy to write it again. My guess was that@ around 80-100$ the lights will go out for Bitfinex, as probably most of those longs have been opened with BTC as coll.

[hyphymikey]

To close out those shorts coins have to be bought back. They have around 20K coins on finex for sell. It was a joke about million dollar coins, but just wanted to point out there are more shorts than can be closed. Or am I missing something?

If I borrow something and sell it, and then I have to buy back in able to return what I sold but there isn't enough out there no matter the price, what do I do?

Also, I don't need bitcoin to be above 300. I want as many coins as possible, shorters are helping me accumulate. But seeing the order books I would not short myself.

The same can easily be stated for those longs being margin called,  not enough bids.  price would also implode

True, but there is far more money on the exchange that is not on the order books. 90% of my fiat is not on the order books, so who knows how much is out there waiting to pounce on a long squeeze. While there may be many coins not on the order books I doubt it even comes close to fiat. All my coins are on the order books at a very high price just in case there is a flash or error and I get "overpaid" for my coins. The reason I don't do the same with my fiat is I don't want anyone to think there is support and hopefully they sell and bring the price down to a point in willing to buy at.

[hyphymikey]

They would close into the 100k+ BTC that have been opened as longs.and need to close at some point..

However, sooner or later Bitfinex will implode and bulls and bears will get burned at the same time.

how will it implode?

Due to the fact that longs can be opened with BTC as collateral. The lower BTC/USD price gets the more dangerous it becomes. I explained the situation a few weeks ago, I'm too lazy to write it again. My guess was that@ around 80-100$ the lights will go out for Bitfinex, as probably most of those longs have been opened with BTC as coll.

Doesn't their algorithm work in a way it takes btc price into account? Let's say you use btc as collateral and open a long, it says you will get margin called at $120, that means at a price of $120 your btc worth $120 each will not be enough to cover your loans. It doesn't work as if btc price is now $220 so you have $220 worth of collateral no matter the btc price. That would be just plain dumb.

Would you mind giving the link to your post? I'm interested as I use bfx.

[coinableS]

To close out those shorts coins have to be bought back. They have around 20K coins on finex for sell. It was a joke about million dollar coins, but just wanted to point out there are more shorts than can be closed. Or am I missing something?

If I borrow something and sell it, and then I have to buy back in able to return what I sold but there isn't enough out there no matter the price, what do I do?

Also, I don't need bitcoin to be above 300. I want as many coins as possible, shorters are helping me accumulate. But seeing the order books I would not short myself.

That would be assuming the shorters don't short again after closing position or that people in long positions don't close their longs as the price rises. However as the price begins to rise from other closing their position new asks will be placed on the orderbook.

[damiano]

order book is never 100% accurate