GoxLoop™ discussion / speculation

[Boxman90]

So, a massive GoxLoop is going on.

What is GoxLoop?
Gox rewinds the orderbook periodically (6 times as of now) during a massive sell event, and replays the trades that happened in the duration of one loop. Any orders placed during the GoxLoop cannot be cancelled. Any orders placed during the GoxLoop will most likely go through after Gox decides to end the GoxLoop.

ITT: Theories, speculations, as to motivations for GoxLoop.

My theories:

- Massive market sell triggered GoxLoop so Gox can sell elsewhere while the price is still high
- Gox lets the loop run for as long as it takes them to move BTC elsewhere (be it another exchange, or w/e) for their profit.

Legal complications?

Please also discuss whether or not this is legal, and if Gox operators could suffer legal consequences, even though this market is unregulated. Would it be legal in the EU/US to do this?

[wobber]

They should have faced some jail already. They are so incompetent it's illegal.

[Jcw188]

I think if they acted at least negligently which caused the price to go down artificially they'd be subject to a lawsuit, wouldn't they?  This is just speculation.

[bitboyben]

Big dump scares the crap out of more sellers. Now more poop.

[Mirsad]

I think if they acted at least negligently which caused the price to go down artificially they'd be subject to a lawsuit, wouldn't they?  This is just speculation.

It's sucks either way.
I expected the price to drop much more.

This looks like currency control... not good for bitcoin. Exchanges can easily manipulate the market with rollback loops.

[GigaCoin]

So, a massive GoxLoop is going on.

What is GoxLoop?
Gox rewinds the orderbook periodically (6 times as of now) during a massive sell event, and replays the trades that happened in the duration of one loop. Any orders placed during the GoxLoop cannot be cancelled. Any orders placed during the GoxLoop will most likely go through after Gox decides to end the GoxLoop.

ITT: Theories, speculations, as to motivations for GoxLoop.

My theories:

- Massive market sell triggered GoxLoop so Gox can sell elsewhere while the price is still high
- Gox lets the loop run for as long as it takes them to move BTC elsewhere (be it another exchange, or w/e) for their profit.

Legal complications?

Please also discuss whether or not this is legal, and if Gox operators could suffer legal consequences, even though this market is unregulated. Would it be legal in the EU/US to do this?


[/quoout



Def something is up, I was looking at the chart and knew something wasn't right. This could be goxloop playing out

Bitcoin is unregulated so def legal at this point of time

[SuperHakka]

one more reason why btc is not ready yet for the prime time.

[Mirsad]

one more reason why btc is not ready yet for the prime time.

It's a long way...
There are only a few bitcoin traders and the exchanges work like shit during high user traffic!
No chance to see 1 billion bitcoin users in the near future with such crappy exchanges.

Turn off trading during a crash -> looks really unprofessional.

[SuperHakka]

i looking at this looping on btccharts, this is some funny shit going on. can you imagine if this started happening on nasdaq or nyse, lmfao

[wobber]

Anyone willing to lobby against MtGox, with me?

[bitleif]

one more reason why btc is not ready yet for the prime time.

One more reason why GOX has never been ready for prime time. I admit I've still been using them but when this correction is over I'm switching.

[GigaCoin]

Alright I looked further into this and I'm convinced of goxloop manipulation. The sell orders are huge with full red We should be below $800 already. Very interesting and clear manipulation!

[sgbett]

i looking at this looping on btccharts, this is some funny shit going on. can you imagine if this started happening on nasdaq or nyse, lmfao

"funny shit" happens an nasdaq, nyse et al all the time, they hide it in plain sight.

http://johnhcochrane.blogspot.co.uk/2012/02/weird-stuff-in-high-frequency-markets.html

[Skybits]

tried to cancel a buy order at 825 b/c i think it will go lower and every time i refresh my screen it appears as if i didn't cancel it. it hasn't hit 825 yet but goes to 829 and back to 877. And then periodically shows 502 bad gateway, could this be a hack attempt?  ....either way this is Lame.

[Mirsad]

The problem is:

The same shit happend yesterday!
The price dropped and I was unable to cancel my buy order @ 680 euros...
Same loop.

Eithere there was an attacker testing his method or GOX itself manipulates the market.

[GriTBitS]

i need to get that buy order in at $1 before it goes back up!!!!!!!!!!!!!!

[beaconpcguru]

Yup this is just either plain manipulation on Gox's part or they do actually halt trades when the ongoing balance exceeds their hotwallet balance.  Either way, like I always tell people you can trust in Bitcoin itself but exchanges can do anything they want.  If you trade in an unregulated market then there can be no SEC violations.

[Inedible]

This will all stop as soon as Bill Murry wins Andie McDowell's heart.

Until then, we're Goxloop'd!

[GriTBitS]

not sure who is putting all these sell orders in i dont see anything on the sell side

[beaconpcguru]

Though, I'm sure the price will rebound (>900) just after they manage to reset.. though I'm sure a lot of people panicked and will regret it immediately, those who are scared because they market bought during this whole scenario will come out on top once everything catches up.  No worries.