Bitcoin flash crashes to $8200 at Binance.us

[bL4nkcode]

I don't think that it's a bug at all. This isn't the first time something like this happened in the crypto world and it certainly isn't the last. The investors who filled these orders truly deserve their profits.

Yeah, it could be, but we're talking binance here, there are some trading software especially binance have these kind of moderation thing (or whatever you call it to lessen the  the loss and avoid selling so much higher price).

Like anyone said like you too, it's a crazy luck. Then what do you want to call about the one who set the sell order? it's a terrible thing, imagine if it's you. Coz  who the hell will set a sell price for that low? Probably, in just a single digit mistake he ruined his life. The software should have not execute the order to avoid such thing.

[vv181]

It must be a bug ~ an expensive bug if the one who set that price for a small mistake of putting another zeros/digit. On the other side, it's a very lucky bug to those who buy/filled it lol.

I don't think that it's a bug at all.

Recent news stated that it is a bug from their institutional trader:

“One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off that was reported this morning,” a Binance.US spokesperson told CoinDesk.

“We are continuing to look into the event but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved,” the spokesperson said, declined to comment on further details about the crash.

I envy those who are able to gain quick profit because of the devastating bug. I mean, damn, those swings ain't small. Yet in the other hands, there might be some who got their stop loss executed.

[DdmrDdmr]

<…>

I’ve seen that mentioned around here and there, and the reason behind seems to be attributed to an institutional trader that "has a bug" in their trading algorithm. That still does not shed much light on the event, and I wonder if the sold BTCs were of a sole seller, or if it caught others in the cross-fire.

See: https://www.coindesk.com/markets/2021/10/21/bitcoin-price-flash-crash-on-binanceus-attributed-to-trader-algorithm-bug/

[LFC_Bitcoin]

<…>

I’ve seen that mentioned around here and there, and the reason behind seems to be attributed to an institutional trader that "has a bug" in their trading algorithm. That still does not shed much light on the event, and I wonder if the sold BTCs were of a sole seller, or if it caught others in the cross-fire.

See: https://www.coindesk.com/markets/2021/10/21/bitcoin-price-flash-crash-on-binanceus-attributed-to-trader-algorithm-bug/

Imagine if you had a long on there that was liquidated, damn. Alternatively there will be some shorters & people who had stink low bids in feeling happy tonight

[Bitcoin_Arena]

Imagine if you had a long on there that was liquidated, damn. Alternatively there will be some shorters & people who had stink low bids in feeling happy tonight

Good thing it was a spot market and I don't think Binance.us offer trading derivatives.

However, I feel for the whale who decided to unload that much BTC at once. I mean, who the hell would be happy to sell off their BTC they held at 65K at 8K?

[rdbase]

That's a shady thing happen on Binance US it's trending now on Reddit here https://www.reddit.com/r/BinanceUS/comments/qcql1a/what_just_happened_here/

The only users who make a profit are those who set buy orders at a lower price so if you have set a buy order at $10k then you already made a profit right now.
Other exchanges are not affected even on Binance.com so there is something happening on Binance US.

It's just like the same happens on Binance.com but the only difference is it's not a huge price down it increases way to $99k.

I remember this happening to ethereum some years ago ($800 down to $200 in a minute then back up) but never to bitcoin to such a low level from $60k to $8k.
Somebody with sticky fingers made the mistake that time but I doubt it was the same for this one.
But your right, the only ones to make anything out of it would be the ones who had a big order for bitcoin at $8200 and got them filled.
Lucky on those binance.us customers to get cheap coins for sure.

[Poker Player]

the only ones to make anything out of it would be the ones who had a big order for bitcoin at $8200 and got them filled.
Lucky on those binance.us customers to get cheap coins for sure.

Lol, I mean, before seeing this news I would have thought: who is the crazy person who has large purchase orders at $8.5k when the price is around $65k? But I imagine that with this background, orders well below the current price are going to be multiplying.

[franky1]

just goes to show what happens when instead of one central market yielding combined orders that total 1mill coins to defend a price point. but instead there are multiple markets of the same currency pair where many markets only yield a combined orderbook of under 600coin each..

it then doesnt take much to eat through them orders.
just be glad that the arbitrage bots of other exchanges didnt trigger their own mass sell off to match the sudden event on binance US,

its one of the many reasons for bitcoin volatility. many exchanges with many having order lines that just a 0.001 can change the price by over 10cents

yep $60 can manipulate the price by 10cents. meaning a market cap that was:
18.85mill coin X $63,000.10 = $1187551885000
becomes
18.85mill coin X $63,000.10 = $1187550000000

meaning that these WEAK exchanges with WEAK volume and WEAK orderline value and WEAK gaps between price points can change a 'market cap' by $1.8m on a particular exchange, by just a single order of $60 of fiat

and also the other weakness. by having low volume of combined orderbook. can send the price of the exchange into free fall with just a few hundred coins.

..
again for emphasis. this bit of drama could have been far far worse if the arbitrage bots were triggered to sheep follow the crash on other exchanges. causing all exchanges of low volume to crash/dip

[kryptqnick]

Wow, I didn't know things like that could happen, to be honest, but it's still no big deal. For one, it lasted for a minute, from what I've read. Also, it was only one exchange (a very popular exchange, but still) and only in one region. Thankfully, it didn't affect the global price situation at all, and even on Binance US it was allegedly due to a bug (so it wasn't even an intentional dump). I think it actually shows that even big dumps don't cause panic and that whale manipulations aren't as easy as some believe them to be. The impact was very brief and local, and overall Bitcoin wasn't hurt by these events.

[Natalim]

Wow, I didn't notice that, I was just looking at CMC for the price, and since it tells only the average price among exchanges, it did not print the figures.
I guess we have some lucky buyers who bought at a lower price and got their order filled, I never imagine it could happen to bitcoin which has a huge trading volume. Anyway, we are back to normal now.

[michellee]

Is that a flash dump? Or there is a problem with their server? Whether that is something that we do not know, those people who bought at that price are very lucky because they can now buy a lot of bitcoin at a very big discount on bitcoin. From the image, I guess that is a flash dump from the big whales that sell his bitcoin at once and make the price drops drastically, although that is happening for a short time.

[UmerIdrees]

Apparently it was caused by somebody selling 600BTC at market price. Binance obviously really thin order books which is what enabled this to happen.

Quite embarrassing for Binance tbh.

What a pleasant surprise for those who got their orders filled. 

So binance, apparently the biggest exchange in terms of liquidity, had only 600 bitcoins in their order book which made the price drop to below 10,000$. This means that other exchanges will have even less bitcoins on their order book   

[bL4nkcode]

I don't think that it's a bug at all.

Recent news stated that it is a bug from their institutional trader:

“One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off that was reported this morning,” a Binance.US spokesperson told CoinDesk.

“We are continuing to look into the event but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved,” the spokesperson said, declined to comment on further details about the crash.

I envy those who are able to gain quick profit because of the devastating bug. I mean, damn, those swings ain't small. Yet in the other hands, there might be some who got their stop loss executed.

I wonder if there's a refund for this considering that those were from their institutional traders.

On the other note, all exchanges should have a feature to avoid like this user's mistake happens again.

[franky1]

I wonder if there's a refund for this considering that those were from their institutional traders.

the institutional trader made a mistake with his bot. so his fault for HIS bot selling HIS coin.
the other people on the exchange, if they are effected, well they are buyers. meaning they got cheap coin at discount.

i dont have the order history (maybe other people in topic can provide that) but most volume/orders are usually 'full' in the first 10% of orderbook so most of the 500+ coins would have sold at $63k->$57k and then a few dozen below that at probably $57k-$37k and a few dozen $37k-$8k. because the volume at the lower orderlines would be low of yeild the further away from the main spread price minutes before the action

in short it didnt sell all coins at $8k. but alot of coins above $60k, and less and less coins as the orders got eating down the price wall. so the loss, averaged out is not as bad as some think..

but for the lucky buyers that did happen to have orders sat at low numbers for the ;just in case' well. lucky for them.

[masulum]

It's a shame that many bitcoins were immediately sold in one go. Binance certainly can't be completely blamed in this case, but because the bitcoin owners themselves were careless by selling out once. Maybe he made a mistake when he entered the sell order. One incident which is certainly very beneficial for the buyer, although on the other hand we also regret what was experienced by the seller.

[samuraijin]

This flash crash doesn't seem to have any effect on other exchanges, considering it happens frequently on some exchanges, hopefully it's not a sign of a bitcoin price crash, currently bitcoin is going through the 100k price as predicted by many experts, so let's have a look at that at the end of this year

[TopTort777]

It's a shame that many bitcoins were immediately sold in one go. Binance certainly can't be completely blamed in this case, but because the bitcoin owners themselves were careless by selling out once. Maybe he made a mistake when he entered the sell order. One incident which is certainly very beneficial for the buyer, although on the other hand we also regret what was experienced by the seller.

If I remember clearly, Binance warns user if he sets very low sell price and click sell button with a warning message. User must click confirm if he really wants to make a sell order. If this was the situation, then it is 100% seller fault. I am sure that Binance is not the one to blame here. But I am also sure that this seller will try to write letters to support, blame UI and try to get his BTC back.

Suggestion to everyone - make <5k$ buy orders, maybe you will be lucky one day

[franky1]

It's a shame that many bitcoins were immediately sold in one go. Binance certainly can't be completely blamed in this case, but because the bitcoin owners themselves were careless by selling out once. Maybe he made a mistake when he entered the sell order. One incident which is certainly very beneficial for the buyer, although on the other hand we also regret what was experienced by the seller.

If I remember clearly, Binance warns user if he sets very low sell price and click sell button with a warning message. User must click confirm if he really wants to make a sell order. If this was the situation, then it is 100% seller fault. I am sure that Binance is not the one to blame here. But I am also sure that this seller will try to write letters to support, blame UI and try to get his BTC back.

Suggestion to everyone - make <5k$ buy orders, maybe you will be lucky one day

the binance.us UI has those warnings. but its API that bots use have different signals.
that said it was the sellers fault so i dont think he would be asking for support. he will just knotch it up to his own stupidity and treat its as a learning experience.. eg we all make mistakes.

as for luck.. well many people that cant be bothered storing coins in cold wallets/private wallets offline. and prefer to use exchanges as their 'bank account'. many of them do just leave their coin as active orders at low numbers. they dont really hope or pretend their orders will ever get filled due to happy accidents. .. but for those that did on the binance.us orderbook that day. they will be very happy they did.
cant say it will ever happen again. and i dont suggest people to leave lots of coin in exchanges for long periods, for the 'hope' of 10x discount accidents.. as it is more likely that a MTGOX 'we lost your coins' is more of a chance of happening instead of profiting

[BITCOIN4X]

Suggestion to everyone - make <5k$ buy orders, maybe you will be lucky one day

Only if they are willing to take the risk. Storing money or asset on an exchange is highly discouraged because of the risks. It didn't matter if they wanted to do it after considering the risks.

Anyone lucky enough to get involved in that 1 minute event looks like he's about to throw a big party when he realize that his buy order is filled with discounted bitcoin. This is really a mistake that can frustrate the seller for life after waiting for the best moment of his life for years to get rich with bitcoin but he is selling it at a discount. It is deeply regretted.

[Timelord2067]

It just goes to show you that placing a far lower than the market buy order and just parking it there can sometimes reap unexpected rewards.  It also goes to show when someone want to cash out, they will sometimes take whatever they can at that time as they obviously needed the cash more than they needed the crypto.