Confirmed: Bitcoinica sold at $1.994

[zhoutong]

Saw some people discussing about the "manipulator" sold below $2.

It's not the manipulator, but Bitcoinica. Our system liquidated a lot of positions at the price around $2.

We sent three limit orders to Mt. Gox for hedging:

SELL 19693.42 BTC at $2.00778
SELL 3130.5 BTC at $1.81321
SELL 3083.0 BTC at $1.81253

Apparently, the lowest price hit $1.994. We have been continuously warning our clients about the risk of margin trading. However, this was an inevitable outcome as the bot is unable to judge whether the price will go lower.

In order to protect our customers, we have lowered the default leverage to 2.5:1, while still preserving their freedom of choice.

This post is not intended for anything. Just to let you guys know so that you know what happened.

[Crypt_Current]

Saw some people discussing about the "manipulator" sold below $2.

It's not the manipulator, but Bitcoinica. Our system liquidated a lot of positions at the price around $2.

We sent three limit orders to Mt. Gox for hedging:

SELL 19693.42 BTC at $2.00778
SELL 3130.5 BTC at $1.81321
SELL 3083.0 BTC at $1.81253

Apparently, the lowest price hit $1.994. We have been continuously warning our clients about the risk of margin trading. However, this was an inevitable outcome as the bot is unable to judge whether the price will go lower.

In order to protect our customers, we have lowered the default leverage to 2.5:1, while still preserving their freedom of choice.

This post is not intended for anything. Just to let you guys know so that you know what happened.

EVERYONE:
Told ya.

[Crypt_Current]

Sooooooooooooooooooooo...

Now that Z has rolled back leverage to the 1970s, ...

... is price gonna go up??

BUY BUY BUY BUY BUY BUY BUY

[BadBear]

i kinda feel bad for people getting liquidated but swimming always makes me feel better.

[Etlase2]

EVERYONE:
Told ya.

Told us what? That 0.3% of the coins available dropped the market another 10-20%? Jump for joy, the return to prosperity is here.

[BadBear]

EVERYONE:
Told ya.

Told us what? That 0.3% of the coins available dropped the market another 10-20%? Jump for joy, the return to prosperity is here.

BUY!

[proudhon]

i kinda feel bad for people getting liquidated but swimming always makes me feel better.

http://www.youtube.com/watch?v=MKISmzmO9Mw&feature=related

[Crypt_Current]

EVERYONE:
Told ya.

Told us what? That 0.3% of the coins available dropped the market another 10-20%? Jump for joy, the return to prosperity is here.

I've been saying all over the place on these forums the past few days, there is no "manipulator", if there was, the most likely candidate would not be any person per se, but an organization that moves lots of btc for its operation, aka Bitcoinica.

[Etlase2]

I've been saying all over the place on these forums the past few days, there is no "manipulator", if there was, the most likely candidate would not be any person per se, but an organization that moves lots of btc for its operation, aka Bitcoinica.

Right, so the drop to $1.994 was just a bad day at the market. Gotcha. BUY BUY BUY

[Crypt_Current]

I've been saying all over the place on these forums the past few days, there is no "manipulator", if there was, the most likely candidate would not be any person per se, but an organization that moves lots of btc for its operation, aka Bitcoinica.

Right, so the drop to $1.994 was just a bad day at the market. Gotcha. BUY BUY BUY

YES INDEED BUY BUY BUY BUY BUY BUY BUY... you, I mean.  Not me.  :-D

[Etlase2]

I would be a fool not to give you my money.

[Crypt_Current]

Saw some people discussing about the "manipulator" sold below $2.

It's not the manipulator, but Bitcoinica. Our system liquidated a lot of positions at the price around $2.

We sent three limit orders to Mt. Gox for hedging:

SELL 19693.42 BTC at $2.00778
SELL 3130.5 BTC at $1.81321
SELL 3083.0 BTC at $1.81253

Apparently, the lowest price hit $1.994. We have been continuously warning our clients about the risk of margin trading. However, this was an inevitable outcome as the bot is unable to judge whether the price will go lower.

In order to protect our customers, we have lowered the default leverage to 2.5:1, while still preserving their freedom of choice.

This post is not intended for anything. Just to let you guys know so that you know what happened.

I guess bitcoinica's not responsible for this wall at 2.10 then?

[zhoutong]

EVERYONE:
Told ya.

Told us what? That 0.3% of the coins available dropped the market another 10-20%? Jump for joy, the return to prosperity is here.

I've been saying all over the place on these forums the past few days, there is no "manipulator", if there was, the most likely candidate would not be any person per se, but an organization that moves lots of btc for its operation, aka Bitcoinica.

It's a fair comment. But as far as I have observed, manipulator exists. Bitcoinica don't place walls. It's just a dark pool that removes liquidity from the market when there's liquidity at favorable or unfavorable prices.

Keep in mind that all trades executed by Bitcoinica are completely automated. Even though I do have a personal account and I sometimes trade, I don't trade based on the information about my clients and I never trade more than 300 BTC.

[zhoutong]

Saw some people discussing about the "manipulator" sold below $2.

It's not the manipulator, but Bitcoinica. Our system liquidated a lot of positions at the price around $2.

We sent three limit orders to Mt. Gox for hedging:

SELL 19693.42 BTC at $2.00778
SELL 3130.5 BTC at $1.81321
SELL 3083.0 BTC at $1.81253

Apparently, the lowest price hit $1.994. We have been continuously warning our clients about the risk of margin trading. However, this was an inevitable outcome as the bot is unable to judge whether the price will go lower.

In order to protect our customers, we have lowered the default leverage to 2.5:1, while still preserving their freedom of choice.

This post is not intended for anything. Just to let you guys know so that you know what happened.

I guess bitcoinica's not responsible for this wall at 2.10 then?

No, unless the slippage is too large that we can't find a correct price to trade at, we don't leave any orders open.

Bitcoinica offers guaranteed liquidity, so sometimes we may lose, but most time the slippage is within the spreads.

[Crypt_Current]

Saw some people discussing about the "manipulator" sold below $2.

It's not the manipulator, but Bitcoinica. Our system liquidated a lot of positions at the price around $2.

We sent three limit orders to Mt. Gox for hedging:

SELL 19693.42 BTC at $2.00778
SELL 3130.5 BTC at $1.81321
SELL 3083.0 BTC at $1.81253

Apparently, the lowest price hit $1.994. We have been continuously warning our clients about the risk of margin trading. However, this was an inevitable outcome as the bot is unable to judge whether the price will go lower.

In order to protect our customers, we have lowered the default leverage to 2.5:1, while still preserving their freedom of choice.

This post is not intended for anything. Just to let you guys know so that you know what happened.

I guess bitcoinica's not responsible for this wall at 2.10 then?

No, unless the slippage is too large that we can't find a correct price to trade at, we don't leave any orders open.

Bitcoinica offers guaranteed liquidity, so sometimes we may lose, but most time the slippage is within the spreads.

SOOOO... it's more likely that this 2.10 wall is fake.  That's my personal conclusion.

[ElectricMucus]

Bitcoinica offers guaranteed liquidity, so sometimes we may lose, but most time the slippage is within the spreads.

Can you elaborate on that?

Especially with a market order how is that guaranteed? Only for a block of 50 BTC? How do I find the spread for a larger amount?
What are these numbers above the prices? (0-9)

[zhoutong]

Bitcoinica offers guaranteed liquidity, so sometimes we may lose, but most time the slippage is within the spreads.

Can you elaborate on that?

Especially with a market order how is that guaranteed? Only for a block of 50 BTC? How do I find the spread for a larger amount?
What are these numbers above the prices? (0-9)

The price you see is immediately available for trading. Your market orders can be executed immediately. Our bot will simply get the price from the database and add the position into your account. Matching and hedging will be done later.

If you trade more than 50 BTC, it will be split into multiple orders of 50 BTC. There will be a reasonable interval such as 5 seconds between them during the execution to allow the price to change.

The small number is a pipette. It's simply the 5th digit. Most forex brokerages use this format to show "pips" (0.0001) clearly while providing more precision.

[ElectricMucus]

Thanks, also has the leverage been reduced globally or have I received a margin call? It only shows 2.5 now..

[zhoutong]

Thanks, also has the leverage been reduced globally or have I received a margin call? It only shows 2.5 now..

Reduced globally.

If you want to request for changing back, email to support@bitcoinica.com

[Crypt_Current]

Thanks, also has the leverage been reduced globally or have I received a margin call? It only shows 2.5 now..

Reduced globally.

If you want to request for changing back, email to support@bitcoinica.com

Cool, thanks for that info.