Do you agree with Binance's behavior?

[2double0]

In the image above, that pump took place in futures markets on Binance's BTC-USDT perpetual pair on 26 Jul, 2021. You can check the spot charts that there was no $12k pump during when it pumped in futures. The volume at spot was also not so good, but that $12k futures candle had a 182k btc traded volume for that hour only. This cannot be any institution or a normal person's work, I smell something fishy here to attack the traders and decide the trend, change it and liquidate them to make quick money.

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[Boov]

~snip~

In the image above, that pump took place in futures markets on Binance's BTC-USDT perpetual pair on 26 Jul, 2021. You can check the spot charts that there was no $12k pump during when it pumped in futures. The volume at spot was also not so good, but that $12k futures candle had a 182k btc traded volume for that hour only. This cannot be any institution or a normal person's work, I smell something fishy here to attack the traders and decide the trend, change it and liquidate them to make quick money.

Based on the chart, it seems that there's an attempted manipulation happening mate and partly I agree on your analysis that situation turned out fishy. Much better if we choose spot instead of futures, because that system in binance was governed by trading bots or operated by real time traders who've been working for them. We can't beat the computer, they're monitoring our activities so just avoid this type of trading section if you think you're losing much.

[Slow death]

this is very weird and to be honest it's the first time I see it. but months ago i saw something strange in binance, the price of bitcoin dropped a lot in a few minutes and binance had frozen, if memory serves me correctly i had bought LTC for the price of $205 and in a few minutes binance froze and the price of LTC dropped to $128 and went back up a little, for me it was irritating because binance had frozen just at the time of price drop a lot and my stop-loss was not triggered strangely either. there are strange things in binance it even looks like they are taking advantage of these big falls and price increases

[Yaunfitda]

Definitely, it's been suspected that Binance might have something to do with it behind doors. And I also heard that a lot of traders saw this unusual spike in the price and many have been complaining against Binance specially spot traders. It could be a glitch or something went wrong. But according to them, someone place huge number of buy order for BTC/USDT during the market mayhem that time causing a large candlewick to appear. But still doesn't make sense to me.

[adaseb]

From those that don't know. This was nothing but some type of API error. The CEO of Binanace already talked about it on his twitter. Nobody got liquidated and even if you had a limit sell order in that number, you would of never got a fill.

Binance futures is VERY liquid and this shouldn't happen and most likely wouldn't. Even if it did, nobody would get liquidated unless the mark price was also that high because that is how liquidations are done. They are based on an index price and not on last traded price. Hence no liquidations however stop losses and limit sells would be affected.

However this was an error due to some API and its incorrectly displayed. Nobody I know managed to get an actual BTC sell at those prices compared to what happened in the spot market.

[cryptoaddictchie]

From those that don't know. This was nothing but some type of API error. The CEO of Binanace already talked about it on his twitter. Nobody got liquidated and even if you had a limit sell order in that number, you would of never got a fill.

So it just means that the price action based on the chart is pure glitch only? Ive never read this announcement by CZ but its good that this is was cleared on his side. But to be honest the chart is so weird and really unfair within the given time frame and that disarray of spike.

Anyone traded future during this time?

However this was an error due to some API and its incorrectly displayed.

This sometime confuses the traders and become suspicious more due to that.

[maxreish]

Definitely, this has something to do with those NFT crypto games which make you buy BNB coin to transfer in metamask wallet and convert it into some of their coins to enable them to play. Most of those NFT also use Binance exchange and BNB. As the trend for those games recently hit the market, probably the reason why it spike suddenly like that.

[Kong Hey Pakboy]

Definitely, this has something to do with those NFT crypto games which make you buy BNB coin to transfer in metamask wallet and convert it into some of their coins to enable them to play. Most of those NFT also use Binance exchange and BNB. As the trend for those games recently hit the market, probably the reason why it spike suddenly like that.

Is there anything wrong with that I mean that's the only way you can buy those NFT to play the play to earn feature of those games so I don't see where you're getting at because it's not inherently a bad thing although if there really is a manipulation then what can we do? Boycott them? What we have to be doing is being vigilant at all times on the signs of a market manipulation.

[erep]

However this was an error due to some API and its incorrectly displayed.

This sometime confuses the traders and become suspicious more due to that.

Thankfully CZ had confirmed the suspicious liquidation move, as the digital trail would record and spread it on bad assumptions. I like their responsive behavior when an exchange system error occurs, they confirm honestly if the API is not working properly.

[Dhaniii]

However this was an error due to some API and its incorrectly displayed.

This sometime confuses the traders and become suspicious more due to that.

Thankfully CZ had confirmed the suspicious liquidation move, as the digital trail would record and spread it on bad assumptions. I like their responsive behavior when an exchange system error occurs, they confirm honestly if the API is not working properly.

they always say so, if this is a mistake apologies. but it is necessary to correct the mistakes or omissions made, so that in the future it does not happen again in such a way.
I also confused the graph which was so protruding up in a sudden and down at the same time.

[erep]

they always say so, if this is a mistake apologies. but it is necessary to correct the mistakes or omissions made, so that in the future it does not happen again in such a way.

I'm sure the binance team doesn't want this to happen but CZ quick response is commendable, not all CEO are friendly and respond to system errors except for very fatal errors.

I also confused the graph which was so protruding up in a sudden and down at the same time.

You can refer to the post above for the basis for the suspicious increase in liquidity, https://bitcointalk.org/index.php?topic=5351826.msg57575022#msg57575022

[Gozie51]

From those that don't know. This was nothing but some type of API error. The CEO of Binanace already talked about it on his twitter. Nobody got liquidated and even if you had a limit sell order in that number, you would of never got a fill.

That would have been a great lose if traders orders were filled. Nice to bring this information and I think CZ has done well to educate traders. The spike is abnormal as it didn't reflect on most platforms except binance, perhaps there was an error that caused the pump.

[Wind_FURY]

OP, but you should take it into consideration that the perpetual futures market, and the spot market are two different markets, one with 100x leveraged trading, and the other none. It’s possible that a small surge in the perpetual futures market caused a short squeeze, that liquidated many accounts that had high leveraged short positions which also caused the small surge into a sharp surge.

[Husires]

It's not the first time I remember a similar story from Coinbase where the change in price was so vast.



I do not know if everyone affected by this matter will be compensated, but you can contact the support team and they will give you accurate answers.

[cryptoaddictchie]

Thankfully CZ had confirmed the suspicious liquidation move, as the digital trail would record and spread it on bad assumptions. I like their responsive behavior when an exchange system error occurs, they confirm honestly if the API is not working properly.

They should cause if not its only will be a bad publicity on their end anway.

CZ is a smart guy and he knows that if he fail the users of his exchange it could lead to a more negative impact on his company. We all knew that there are some issues his facing now but I believe this will be fixed. So the issue on this particular incident should be reported honestly for his sake too.

[hatshepsut93]

Don't they have x125 or x150 leverage on their perpetual futures? Crazy things can happen with such leverage, if it's not some software bug, of course. There's no rule that says that the price of derivatives should match the spot market price, after all, what would be the point of having derivatives?

[Yamifoud]

It's not the first time I remember a similar story from Coinbase where the change in price was so vast.



I do not know if everyone affected by this matter will be compensated, but you can contact the support team and they will give you accurate answers.

CZ had already explained it on social media. That is actually weird, if it is either CZ is telling the truth or not at least we found something that we need to be aware of the situation and must act safely in order not to get surprised about their next actions.
Well, I'm still going to trust Binance but this time, I have to limit my funds on them and not even stay there longer to avoid any unnecessary things like what happened to the other exchanges. It is better to make it safe rather than regret it later.

[adaseb]

Don't they have x125 or x150 leverage on their perpetual futures? Crazy things can happen with such leverage, if it's not some software bug, of course. There's no rule that says that the price of derivatives should match the spot market price, after all, what would be the point of having derivatives?

Yes the leverage is that high however most people don't use that much leverage. I think the average leverage used is like 5-10x. The ones that use 100x are usually the small accounts which are trading with $100. So even with 100x leverage, the make they can trade is $10000 sizes which is very little in todays standards. So even if they get liquidated it won't cause a huge cascading liquidating candle.

The issue with Coinbase above was due to leverage and hence why there is no more leverage on Coinbase. Because almost everyone on Coinbase longs on leverage and there wasn't enough people shorting on leverage that it just took one event like that to cause a huge cascading liquidation event. Hence why there is no more leverage there and they never had issues since.

[virasog]

In the image above, that pump took place in futures markets on Binance's BTC-USDT perpetual pair on 26 Jul, 2021. You can check the spot charts that there was no $12k pump during when it pumped in futures. The volume at spot was also not so good, but that $12k futures candle had a 182k btc traded volume for that hour only. This cannot be any institution or a normal person's work, I smell something fishy here to attack the traders and decide the trend, change it and liquidate them to make quick money.

This was pure manipulation by binance and nothing else. Binance is playing dirty games these days and usually do such things to liquidate people. Remember, they can't do this forever and sooner or later, we will see a downfall in binance. If you are still trust binance and keep your funds there, it's your own fault.

[Reid]

This was pure manipulation by binance and nothing else. Binance is playing dirty games these days and usually do such things to liquidate people. Remember, they can't do this forever and sooner or later, we will see a downfall in binance. If you are still trust binance and keep your funds there, it's your own fault.

Members above said CZ cleared this out.
I am having a hard time looking at where it is, I am not good at digging twitter.
But there is one I found about Wall Street Journal with Binance users trying to file a lawsuit about the 1-hour freeze that made traders lose their money from leveraged bets. That's July 11 though.
OP's questionable event happened on July 26. It seems like they are having trouble too often with their API which will raise a lot of eyebrows.