Was flashcrash orchestrated to get around MtGox withdrawal limit?

[shads]

Hacker steals x thousand BTC.
Hacker tries to withdraw and hits limit $1k USD limit.
Hacker starts dumping BTC to crash price.
Number of bitcoins he can withdraw equivalent to under $1k USD increases dramatically.
Hacker withdraws all remaining BTC.

[1715174871]

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[1715174871]

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[1715174871]

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[imperi]

It could have been an attempt to do this, yes.

[flug]

aaaaahhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!!

[grue]

obviously

[lizthegrey]

Seems like the simplest defense against this would be to use a moving average to base the withdraw limits off.

[BeeCee1]

Hacker steals x thousand BTC.
Hacker tries to withdraw and hits limit $1k USD limit.
Hacker starts dumping BTC to crash price.
Number of bitcoins he can withdraw equivalent to under $1k USD increases dramatically.
Hacker withdraws all remaining BTC.

I wish I'd thought of that.  Oh wait, I did. http://forum.bitcoin.org/index.php?topic=19672.msg246725#msg246725  (Not sure that you read that post though.) 

Clearly, that $1,000 withdraw limit for bitcoins should use some sort of moving average price, maybe over 7 days or so.

[shads]

No hadn't read it, woke up about a hour ago and there was a lot of threads to go through...

[BeeCee1]

No hadn't read it, woke up about a hour ago and there was a lot of threads to go through...

That's ok, the irony is that while I was writing that someone else posted the moving average idea and I inadvertently repeated it.  I guess these ideas aren't as novel as we think they are.

[iCEBREAKER]

Seems like the simplest defense against this would be to use a moving average to base the withdraw limits off.

That would be the 2nd simplest defense.

The most simple defense would be a circuit-breaker that automatically halts trading in the event of a flash crash or other anomalous event.

I'm absolutely sure that I'm the very first one to suggest that MtGox and the rest implement this.

*files with patent office*