Manipulation in Binance Futures Trading

[Pokapoka124]

Bitcoin got to $48,000 on the futures market and yet my sellborder at $40,000 wasn't triggered. I wonder how this happened without my sell order closing? Is Binance trying to manipulate the market because I'm sick of exchanges trying to liquidate traders

[jackg]

I've had this before... In much nicer conditions too. I think a to executed even though we went past there on the chart.

I'm not sure what binance are doing just in general with their system design as it seems to be really awful (especially getting a "server busy" error on a limit order - add it to the queue).

[rhomelmabini]

Somehow that's the safest assumption. That's not nice from their side if the spike hit some liquidations to others and seems they haven't found any system issues then should have executed some other sell orders. Many leveraged traders aren't really into Binance most of them choose either Bybit or Phemex this time around.

[crwth]

Upon checking the 1m timeframe, it's probably an institution putting a position on BTC.



It occurred that fast, maybe it's just a single trader and fat-fingered it or something. I doubt they would admit it or something.

[Pokapoka124]

this is must be like a glitch from binance . these kinds are used to liquidate traders, have seen scenarios like this from bitmex where traders were also liquidated with this kind of wickshunting. this might seem like a copy strategy from bitmex, who knows.

I experienced those a lot from Bitmex. Bitmex imho is one of the most unreliable exchanges in the crypto space.

[MrcMrc]

Bitcoin got to $48,000 on the futures market and yet my sellborder at $40,000 wasn't triggered. I wonder how this happened without my sell order closing? Is Binance trying to manipulate the market because I'm sick of exchanges trying to liquidate traders

During volatility, most exchanges do take advantage and liquidate positions in other to rub investors or future's traders their hard earned money. I lose my in the month of May and I tried to understand why binance as reputable as it is should involved in this manipulation. I send message to the support but nobody reply uptil now. So many positions has been liquidated today and I believe that some were force to liquidate.

[Sterbens]

in a short time, causing a lot of speculation and of course question marks. I didn't even have time to make an open position. when i was sleeping it evolved to the highest price which after waking you know what i was thinking? this is beyond the expectations of all bitcoin holders. Because after a big correction, then saw the price immediately rose to the $50K line. I really missed the opportunity to release a portion of my portfolio on Binance. When it touched $40K I actually returned to the defensive position.

[logfiles]

Probably someone or a group of whales made huge long (buy) orders, wiping off the sell orders in the order book to up to 48K. I don't think it's manipulation.

Somehow that's the safest assumption. That's not nice from their side if the spike hit some liquidations to others and seems they haven't found any system issues

The link is broken. You might wanna correct it.

Many leveraged traders aren't really into Binance most of them choose either Bybit or Phemex this time around.

If you check the derivatives trading volume data across the exchanges. Binance still has a superior volume over those 2 combined.

this is must be like a glitch from binance . these kinds are used to liquidate traders, have seen scenarios like this from bitmex where traders were also liquidated with this kind of wickshunting. this might seem like a copy strategy from bitmex, who knows.

They use mark price for Liquidations, so in this case, such price anomalies don't get one Liquidated.

[shield132]

Probably someone or a group of whales made huge long (buy) orders, wiping off the sell orders in the order book to up to 48K. I don't think it's manipulation.

A group of whales made long orders? Do you really think so? Then they should be in loss right now because price is 10K lower. This is pure manipulation from the Binance and it's sad that no one is responsible for this crime/rob.

Okay, see this too. I hugely doubt any group of whales would buy 1 GBP for 1.80 USDT, there was a 36% change that day and consider that you can trade here with 5x leverage, so, in any way, those who used 4x or 5x leverage of their capital, would get liquidated.

Here is the image:

[logfiles]

Probably someone or a group of whales made huge long (buy) orders, wiping off the sell orders in the orderbook to up to 48K. I don't think it's manipulation.

A group of whales made long orders? Do you really think so? Then they should be in loss right now because price is 10K lower. This is pure manipulation from the Binance and it's sad that no one is responsible for this crime/rob.

You can call it manipulation or anything you want, but that's how charts reflect what went on in the order books. Look at the buy volume below the chart, It was way higher during that time than the hours before or after. Do you think that just magically appears on the chart?

A smart trader can't lose if they closed the positions when the wick formation started. The foolish traders who joined the ride and bought at the tip lost.

When huge orders are made, there's a cascade of events that are triggered. Stop losses, Take profit orders get executed leading to an abnormal price spike in a short time.

Okay, see this too. I hugely doubt any group of whales would buy 1 GBP for 1.80 USDT, there was a 36% change that day and consider that you can trade here with 5x leverage, so, in any way, those who used 4x or 5x leverage of their capital, would get liquidated.

Same explanation as above

[rhomelmabini]

The link is broken. You might wanna correct it.

Yeah, just noticed it and I already corrected it.

If you check the derivatives trading volume data across the exchanges. Binance still has a superior volume over those 2 combined.

This isn't much about the volume that I refer behind the two derivatives exchange but somehow the system they got. The good thing with Binance though if they got the error by themselves they take the responsibility and funds are SAFU.

[OgNasty]

I saw people discussing this on Twitter but nobody said their positions were liquidated based on that price either, so it doesn't seem like there was any wrongdoing.  If there was evidence of users having their positions liquidated as a result of that inflated price then you would have reason for complaint.  As of now I would guess that maybe they have a secondary dark market for whales based on different liquidation rules, or it was some sort of derivative that was triggered.  A simple bug shouldn't be overlooked either though.

[adaseb]

This was already concluded that it was some form of API glitch. Nobody got liquidated at that price AND nobody who had limit sell orders got their orders filled. Normally when people are about to get liquidated its never on the last price, it always on the mark price. So even if it did have a large spike like that, nobody would of been liquidated.

Only orders that would of filled up there would of been the limit sells and if someone used a stop loss, since stop losses usually are based on last price. So I don't think its manipulation. You would be surprised how deep the liquidity is on Binance and its not that easy to manipulate the price. Maybe on smaller exchanges but not binance.

[Xinarae*]

But binance is a good system for honesty as we suffer from a lack of trustworthiness to sell the dollars we receive online he has no chance here. That means no one can kill your money here because those who advertise here for bicel have to reserve the amount they want to bicel before giving that advertisement. If someone wants to cheat with you, you will get a suitable solution if you present your problem with proof in support of binance protects traders from sinking.

[tranthidung]

The funniest and shadiest thing is

• Your opened positions can be liquidated with market flash movements (ups or downs): You will lose most of your capital
• You opened orders might not be filled in such flash movements. Most of us won't go with law suits against exchanges. As exchange customers, we are in disadvantaged side.
• Lastly, don't join Margin or Future tradings, if you don't know what you are doing (my advice for newbies)
• Allocate less than 10% of your capital for Margin or Future trading, 1% for each trial (to learn & end with loss)

[GreatArkansas]

I am also curious if it is really legit like there were really orders that happened during that time.
I saw some video about the chart during that very huge candle wicks and it shows in few seconds, Bitcoin price on Binance futures really reached to that area and dump again, clearly huge wicks and I am positive it caused by short squeeze, lot of liqudations.

[Kimberl2020]

Bitcoin got to $48,000 on the futures market and yet my sellborder at $40,000 wasn't triggered. I wonder how this happened without my sell order closing? Is Binance trying to manipulate the market because I'm sick of exchanges trying to liquidate traders

It's a pity that I can't post pictures.

I don’t think Biance’s long needle removed the position unless someone buy futures position at 48,000.

[leea-1334]

This was already concluded that it was some form of API glitch. Nobody got liquidated at that price AND nobody who had limit sell orders got their orders filled. Normally when people are about to get liquidated its never on the last price, it always on the mark price. So even if it did have a large spike like that, nobody would of been liquidated.

Only orders that would of filled up there would of been the limit sells and if someone used a stop loss, since stop losses usually are based on last price. So I don't think its manipulation. You would be surprised how deep the liquidity is on Binance and its not that easy to manipulate the price. Maybe on smaller exchanges but not binance.

Yeah, I do not think there was anything malicious from anyone on this. Very clearly a glitch from the platform and no one benefited so other than a data spike that might mess up some TA, nothing happened.

I did not know liquidations happened on mark price though,,, how did all the other ones on bitmex for example happen which has even larger liquidity?

[kxwhalexk]

Yeah, I do not think there was anything malicious from anyone on this. Very clearly a glitch from the platform and no one benefited so other than a data spike that might mess up some TA, nothing happened.

I did not know liquidations happened on mark price though,,, how did all the other ones on bitmex for example happen which has even larger liquidity?

Many people feel that the Binance incident has no impact on ordinary futures investors, but is just a small malfunction.

But I think they are wrong. If the stop loss is set at 39,000, then there will be a stampede because of too many short sellers. In the end, your market price stop loss transaction price will be 48,000 instead of 39,000.

This also reflects the importance of isolated.

I also want to post the reason for this incident.

This is a message sent by a Chinese KOL in the personal media.I translated it, and it roughly means like this

Many people asked me what was wrong, I just want to say that I was tricked by Binance and the loss was very heavy!
I made Binance Perpetual Futures 48000 incident(this is not what I said, but Binance official said it to me), I don't want to talk about the specific details.
Stay away from futures!

He probably lost 20-30 million U.S. dollars from this incident.

[Wind_FURY]

Upon checking the 1m timeframe, it's probably an institution putting a position on BTC.



It occurred that fast, maybe it's just a single trader and fat-fingered it or something. I doubt they would admit it or something.

Liquidation of high-leveraged short positions is more probable in these situations in my opinion. We can also see the same action in the chart when there’s a quick crash, liquidating leveraged long positions. Plus institutions don’t FOMO market buy like us plebs. Haha.

[crwth]

Liquidation of high-leveraged short positions is more probable in these situations in my opinion. We can also see the same action in the chart when there’s a quick crash, liquidating leveraged long positions. Plus institutions don’t FOMO market buy like us plebs. Haha.

Maybe they needed money and decided to manipulate it for a second and just liquidate positions to fund their wallets? Lol. The difference between us plebs and institutions is the buying power, right? And if we combine all the plebs' power, we can overrun the power that they have? That's what happened with the Wallstreet bets and maybe crypto is next.

[enhu]

If there's no one got liquidated then it's probably just a glitch but if it happens like 2 or 3 times already, something is really funnier than a glitch. This is likely the reason why they also reduce the leverage to 20x for all, I didn't read the entire news feed but it's what is said recently.

If someone set 100x and a rich futures traders want to win, he could probably manipulate the trend for himself. depends on the motivation.

[Wind_FURY]

Liquidation of high-leveraged short positions is more probable in these situations in my opinion. We can also see the same action in the chart when there’s a quick crash, liquidating leveraged long positions. Plus institutions don’t FOMO market buy like us plebs. Haha.

Maybe they needed money and decided to manipulate it for a second and just liquidate positions to fund their wallets? Lol. The difference between us plebs and institutions is the buying power, right? And if we combine all the plebs' power, we can overrun the power that they have? That's what happened with the Wallstreet bets and maybe crypto is next.

Who, the plebs? It could also be the combination of some whales and over-leveraged plebs. Which, in my opinion, might be easy to crash the current surge, because the whales could also reverse their positions and have the bearish plebs to take over-leveraged short positions with them, causing liquidations of the bullish plebs’ long positions.

[lixer]

this is must be like a glitch from binance . these kinds are used to liquidate traders, have seen scenarios like this from bitmex where traders were also liquidated with this kind of wickshunting. this might seem like a copy strategy from bitmex, who knows.

It's brutal manipulation but I have one more explanation for this. Look, I am not an expert at trading so please correct me if I am wrong.

This is what might have happened.

Just a small trade was somehow executed at 48k which set the highest marker @48k but because it was just a single trade and the market didn't stay there for much longer, orders were not filled. I believe there are many orders and maybe some were triggered some not.

But again, this is just my theory and the trade should have triggered normally.

[leea-1334]

Yeah, I do not think there was anything malicious from anyone on this. Very clearly a glitch from the platform and no one benefited so other than a data spike that might mess up some TA, nothing happened.

Many people feel that the Binance incident has no impact on ordinary futures investors, but is just a small malfunction.

But I think they are wrong. If the stop loss is set at 39,000, then there will be a stampede because of too many short sellers. In the end, your market price stop loss transaction price will be 48,000 instead of 39,000.

This also reflects the importance of isolated.

I really still do not think there is an impact because no actual trades were settled because of this glitch. But ok,,, let us say market price stop loss is 48k, but that as well did not happen on the glitch, so the trade would have been left alone, or refunded at worst case scenario no? Or maybe I do not understand how it works on Binance:)

[sana54210]

It's brutal manipulation but I have one more explanation for this. Look, I am not an expert at trading so please correct me if I am wrong.

This is what might have happened.

Just a small trade was somehow executed at 48k which set the highest marker @48k but because it was just a single trade and the market didn't stay there for much longer, orders were not filled. I believe there are many orders and maybe some were triggered some not.

But again, this is just my theory and the trade should have triggered normally.

I have to say that may not be the case since it was not fully covered. This is basically something that requires all the sell orders until 48k is covered for a while and then dropped, which we all know didn't happen, if it was just one order, and there were people selling for 40k then even if you fatfinger it then you get to do 40k and when your money runs out that stops, so you can take up a bit but not that much.

What I believe happened was someone put a huge amount of money there, bought it there, then the price went low, so a big whale ended up buying a lot of bitcoin at those prices. Either that or it was just a technical error, which does happen time to time, we have seen ethereum dropping to cents from technical errors as well, just a second and not longer so it didn't hurt the market and same probably happened here, one mistake and that's it, something small.

[el kaka22]

I do not think that it was binance's own doing, it is obvious that there is some sort of situation where some other person did it. However this is understandable, and I am very very happy about it as well. You may think why are you happy that some people lost money?

But the ones that lost it were people who shorted bitcoin and as a long term investor to crypto I really do not like people who short it, is this "nice" thing to do? No of course not, being happy that some others lost money is not nice but that is exactly what shorters do, they are happy whenever bitcoin falls down, hell they make profit when I lose money, hence I do not think that there is any new blood spilled over short futures end up losing money, it is something I wish and hope for because whenever they end up losing money that means I end up making profit anyway.

[DarkDays]

Upon checking the 1m timeframe, it's probably an institution putting a position on BTC.



It occurred that fast, maybe it's just a single trader and fat-fingered it or something. I doubt they would admit it or something.

Same, I found that with futures trading sometimes if the trade is for a split second no orders are being triggered. It seems that the same thing happened here. Sure, it may be a very clever manipulation and nobody will own it, it is just the things we have to bear I guess.

[logfiles]

Liquidation of high-leveraged short positions is more probable in these situations in my opinion. We can also see the same action in the chart when there’s a quick crash, liquidating leveraged long positions. Plus institutions don’t FOMO market buy like us plebs. Haha.

How are the liquidations of short positions possible if they are done on Mark price, not Market price?

I would agree that people who might have managed to open long positions using high leverage during that flash spike may have been liquidated in an Instant, since the mark price was already low. I have ever experienced such a thing before on Bybit. It was a bug they corrected.

[Boov]

~snip~
Bitcoin got to $48,000 on the futures market and yet my sellborder at $40,000 wasn't triggered. I wonder how this happened without my sell order closing? Is Binance trying to manipulate the market because I'm sick of exchanges trying to liquidate traders

Usually I don't dwell with futures trading, became due to lack of knowledge about it. You need to learn everything from scratch when using futures, and most people I've known it's more like gambling in a casino.
Partly, I agree that there's a manipulation which is present with this system so I preferred to use spot trading instead of this system. It can't be manipulated since price was based on entire average btc price followed by different exchanges.

[Wind_FURY]

Liquidation of high-leveraged short positions is more probable in these situations in my opinion. We can also see the same action in the chart when there’s a quick crash, liquidating leveraged long positions. Plus institutions don’t FOMO market buy like us plebs. Haha.

How are the liquidations of short positions possible if they are done on Mark price, not Market price?

You don’t believe that short squeezes could liquidate accounts that have used high leverage to open their short positions? It’s obvious that small moves in price against the trade with 100x leverage is a quick liquidation.

I would agree that people who might have managed to open long positions using high leverage during that flash spike may have been liquidated in an Instant, since the mark price was already low. I have ever experienced such a thing before on Bybit. It was a bug they corrected.

I’m confused. How could long positions be liquidated if there was a “flash spike”, and price went to the direction of their trade?

[RealMalatesta]

Usually I don't dwell with futures trading, became due to lack of knowledge about it. You need to learn everything from scratch when using futures, and most people I've known it's more like gambling in a casino.
Partly, I agree that there's a manipulation which is present with this system so I preferred to use spot trading instead of this system. It can't be manipulated since price was based on entire average btc price followed by different exchanges.

It can be manipulated, I mean the spot trading, it can be manipulated at some point. How can it be manipulated? We have seen it many times, price drops? Say to the whole world Amazon will accept bitcoin and watch it skyrocket, you have long futures opened right before so you can profit from it like crazy? All the better!

It has been manipulated a million times before and it will continue to be manipulated for a long time, hell Elon keep tweeting about doge is a pure manipulation, go do that about any stock and you will be penalized about it, Elon already did, he talked about his own stock back in the day on twitter and he got a huge punishment, and personal as well not for his company, he had to pay it from his own pocket (although he owns his companies as well so he can withdraw money if he wants to I am sure). So basically manipulation in spot market happens all the time.

[UserU]

It's a pity that I can't post pictures.

I don’t think Biance’s long needle removed the position unless someone buy futures position at 48,000.

A little late, but you can do so now since you're now a Junior Member

[MIner1448]

Perhaps this is not done by binance itself, but whales manipulate the market, place huge orders, thereby blocking everyone else with a wall, as soon as the price tag reaches the value they need, they leave the futures game in a huge plus. In general, it is not yet clear who is manipulating the market. I could of course be wrong ...

[logfiles]

You don’t believe that short squeezes could liquidate accounts that have used high leverage to open their short positions? It’s obvious that small moves in price against the trade with 100x leverage is a quick liquidation.

I don't know if you understood my point. What Binance and all derivative exchanges I know use to liquidate positions is the Mark price because it's manipulation resistance as compared to the market price.

Let's assume  during that time, you opened a short position at $40,000 and the liquidation price was at $43,000 but then a few seconds later, the market price of the perpetual contract you traded spikes to $48,000. At the same time the spot markets across all exchanges that Binance uses to calculate the index price stays at $40,000. There's no way your position is getting liquidated because the mark price hasn't crossed $43,000 during that short spike.

I would agree that people who might have managed to open long positions using high leverage during that flash spike may have been liquidated in an Instant, since the mark price was already low. I have ever experienced such a thing before on Bybit. It was a bug they corrected.

I’m confused. How could long positions be liquidated if there was a “flash spike”, and price went to the direction of their trade?

Using the same example, Let's assume during the spike, you managed to open a long position at $45,000 at market price of the perpetual contract you are trading, and your liquidation price is at $41,000 but remember the at the same time, spot markets are still at $40,000 which means the mark price is already below your liquidation price.

You would be liquidated in an instant before you even blink

I hope you now understand.

[Ararbermas]

Bitcoin got to $48,000 on the futures market and yet my sellborder at $40,000 wasn't triggered. I wonder how this happened without my sell order closing? Is Binance trying to manipulate the market because I'm sick of exchanges trying to liquidate traders

i have the same experience when i try to trade with new token wherein it jump to the highest value and the green long tail of the candles really passed my sell boarder but i don't see that my order was confirm because it's showing a cancel option ..so i try to restart my device but its still the same. i don't know what's the best reason for this kind of scenario.. Lol  maybe a bug?

[Pokapoka124]

Cryptocurrency traders are coming together to sue binance for damages for the money they lost as the result of Binance outage. I experienced it too I couldn't login my account for days glad I didn't place any trade at the time.

https://www.google.com/amp/s/www.businessinsider.com/binance-crypto-service-outage-lawsuit-class-action-exchange-headquarters-decentralized-2021-08%3famp