Exchange Manipulation?

[thevoyager23]

Who are the worst offenders?
Who are basically making their (massive amounts) of money by liquidating?!
It just seems to easy to do?

Could it be a case of them somehow artificially pumping market to liquidate am traders?

[GreatArkansas]

This is one of the many downsides of using centralized exchange and manipulation. I am also afraid that most of the big exchanges will cooperate with each then manipulate the market too which is a really serious offense for me.
This is also difficult to identify because there will be every reason for sure if ever some incidents (for them maybe) will happen.

[Cryptomiles1]

Lol 😆
Latoken and Hotbit is the worst of them all, I don't really trade over there with their market manipulation and fake liquidity it is a serious issues among CEX.

[Pmalek]

You can't be liquidated if you aren't involved in leverage or margin trading. Some people who do that have no idea what they are doing anyway. All they see is the BTC signs or dollar symbols in front of their eyes telling them they can make 10x or 100x more with margin trading. But they don't take into account that the chances to lose it all are significantly higher as well. Don't play around with financial instruments you don't know much about on dubious exchanges, and don't store your coins there. Exchange, trade, and withdraw to your private wallet. You won't have to worry about liquidated positions then.

[thevoyager23]

I am on ByBit, how do they rank in the offenders list?

It would not be hard would it for say 10 exchanges to discuss their positions and then each to pump or dump the market, liquidating the most amount positions as possible? BOOM, DONE, GONE, THANK YOU.

[Don Pedro Dinero]

Well, I wouldn't be surprised if there was some manipulation, but the fact that the price has gone from 70,000 USD to 18,000 USD cannot be due to manipulation. To me it doesn't add up with a lot of things. For example, institutional investors are supposed to be selling? I have also seen for a long time that the amount of bitcoin on exchanges kept falling, which means that people are holding on to them and not trading them. In any case, what we are seeing this cycle is making us rethink a lot of things.

You can't be liquidated if you aren't involved in leverage or margin trading. Some people who do that have no idea what they are doing anyway.

I think this is one reason, if not the main reason. We have seen this cycle how leverage has been promoted, by many, but most famously by Michael Saylor, who went so far as to recommend to people that if they have a paid-off house, they should mortgage it to buy bitcoin:

“Mortage your house and buy Bitcoin.” - Michael Saylor

[Ghepetto]

In theory: Centralized exchange owners can call their whale buddies to push the price in either direction thus liquidating millions of dollars, perhaps hundreds of millions worth of leverage trades, in less than an hour.  Maybe in minutes.  In some cases the exchanges may have the fiat or crypto reserves to achieve this without outside help from said whales.  If the cost of the pump/dump is less than the amount of leverage about to be "stolen" it makes perfect sense.

It's free money.  Furthermore, proving this would probably be very difficult unless you were on the inside.  On chain analysis can not expose this IF it is happening.  Only deposits and withdraws can be seen, not the trades themselves.  Convenient isn't it?

I hope the recent freezes on BTC withdraws pushes the -not your keys, not your coin narrative into peoples faces. Perhaps the recent talk of all time low BTC custody on centralized exchanges is true, this will negatively impact business.  Look at all the layoffs being touted by the press in some of the big exchanges.  This could give rise to decentralized autonomous platforms. Either free of leverage trading, or the code might be able to be written to mask where the leverage exists at any point in time. Thus making the hypothesized calculation of pump/dump cost to wrecked leverage positions a stab in the dark, and risky for the manipulators.

After throwing this conspiracy theory out there, I do not think the recent drop from the BTC ATH is manipulation.  

But I do not believe the Luna system just "broke", a weakness was found by some highly analytical individuals that decided to spend a lot of money to knock over the first domino to help rain in this bear market we see right now.  Going to zero, look that "crypto" went to zero!  I put that in quotes because anything that is called a crypto and is controlled by one human (Do Kwon) is no crypto in my book.  Exploitation of the definition of crypto in conjunction with the utter absence of education in this sector definitely helped this unfold.    

All of this stuff is possible, but not probable.  If you can not tell, I do not like centralized exchanges.  But I see them as a necessary evil, and I am thankful they exist to make BTC available to the masses.  Contrast this to getting fiat into the old Fontas exchange and it's a Godsend.  I think they had one guy on a donkey with a saddle to ship it there that made a trip every few months, slowly.

[Coin_trader]

Who are the worst offenders?
Who are basically making their (massive amounts) of money by liquidating?!
It just seems to easy to do?

Could it be a case of them somehow artificially pumping market to liquidate am traders?

This is possible scenario but the exchange itself is not doing it because they will just put there reputation in jeopardy here. Institutional traders usually does squeezing those who have position against them. CEX like Binance is not regulated so whale cheaters usually use this big exchange to do there magic trick.

We can't do anything to stop except avoid futures trading and focus only on spot trading. Most of the victim to this kind of scheme are thise retail traders that always want to ride the wave of crypto pump and dump. Stop feeding the whales of your money by stop doing futures trading.

[litepool.ru]

The wealth management loopholes in this market may be unheard of or read about. But fake trading volumes are not too uncommon as many teams and exchanges may join hands to benefit themselves, as in the cases related to Binance. I think a lot of people have heard about it as well, where they just pump up to push the value off and create a liquidation, then the profit takers here. I think everyone has figured it out too.

[Husires]

Most of the stories of market manipulation, especially in low Marketcap new altcoins, will not be without these platforms:

• YOBIT
• Hitbtc
• changelly

They have a long history of unknown activities, including pumping/dumping coins, bots scam, withdrawing liquidity suddenly, not allowing clients to withdraw,...etc.

coingecko give you a Trust Score which includes Liquidity, Scale, Cybersecurity, API Coverage, Team, and Incident scores.

https://www.coingecko.com/en/exchanges/yobit#trust_score

[dezoel]

There are some places that does sell their coins on their own exchange for sure. I have seen this happen with my own eyes when I was working in one of them, they were making so much bitcoin and other coins from the trading fees and that money had to go somewhere, they can't just keep holding it forever. So, what did they do? They ended up using their very own exchange to sell their trading fee profits which caused the price to go down.

This is even worse than the miners selling their coins, because we have halving and they get to sell less and less eventually. But, what we are talking about here is trading fee and that doesn't really seem like a good deal at all because it will continue forever.

[NeuroticFish]

In my experience I had the feeling I see that on HitBTC, long ago, but that's all.
And I don't think that you can make a list with worse offenders because I am almost sure that the worse offenders were never caught.

However, I'd add Mt.Gox too to the list for price manipulation, if you make one.

[thevoyager23]

Picture this..

Bybit BeBit Botbit Fuckbit or any other type of bit exchange has 1000 customers..

All 1000 customers keen to bet on BITLY a new coin. They all use between 5x and 20x leverage.

All 1000 customers set their stop loss and TP, said exchange uses bots to analyse all the data and it works out the best action to take to liquidate as many as possible maximising as much $ as possible on the exchange side.

Like this is what happens isn't it?

[Potato Chips]

Such big claims needs to be backed by solid evidences otherwise it becomes a hearsay. Most of us here are your average folks, I don't think you'll be able to find the confirmation to your suspicion/s on certain exchanges thru this forum either.

[examplens]

we have quite a few small exchanges with a proven compromised way of doing business, it is certain that some of them use all the possibilities of additional profit. for example, I am not surprised to see a Yobit name in such accusations.
yet how can we be sure that the biggest exchanges are immune to manipulation? Binance for example, have the largest share in the trade, hence the greatest earning potential through this (or any other) kind of manipulation.

[The Cryptovator]

Luckily I have been working on a couple of projects, so a few projects list in a centralized exchange. I was surprised when to see there are no real traders or real Liquidity. Every exchange offer MM (market-making service) or project could use its own MM team to manipulate trading volume. From far you will see there are real traders and Liquidity. But the reality is that is fake. So yea, all exchanges use same tactics to manipulate Liquidity.

[hugeblack]

For manipulation to occur, you need to inject abnormal funds into the market to force the price to move in one direction.

This money is unnatural and therefore, paying it will not be continuous or follow the market movement, which leads to a correction process that may extend from a day to a week as a maximum, and therefore we cannot describe the entire market That it was manipulated, but definitely what happened with Luna is price manipulation.

Manipulating the price of a currency can affect the entire market, based on the extent of the manipulation, but it will not extend for all this period.
What is happening now is a natural correction in prices and the creation of long-term support levels.

[Findingnemo]

Who are the worst offenders?
Who are basically making their (massive amounts) of money by liquidating?!
It just seems to easy to do?

Could it be a case of them somehow artificially pumping market to liquidate am traders?

Literally any exchange which is centralized can do that, all they need is to create a trade order and execute the trade so they can simply create both buy and sell order so that it will matches and pump the trading volume which isn't also a new thing right, no one can actually find what are the real trading volume of any exchange either its popular or the shitty one.