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

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[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.