"No Reserve" explanation

[zhoutong]

We seriously apologize for any inconvenience.

When Bitcoinica was first built, we included a circuit breaker feature to stop trading at one direction when we are out of USD or BTC. However, it has almost never been triggered until today.

Unfortunately, we have a lot of long positions are we're currently unable to fulfill everyone's request to buy. Even though we do not want to interrupt regular market trading activity, we have no case because we don't want to be trading against our customers in this extreme situation.

Liquidation of short positions is also affected but we had no choice. Withdrawal in USD is obviously, also affected. When some more people decided to liquidate their long positions or go short, or more USD funds are deposited, we will adjust the redflag accordingly to allow buying trades.

TL;DR: Bitcoinica can only sell for you at the moment.

[ineededausername]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

[zhoutong]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

There are limit orders from the positions of long people. So there will be more selling soon.

Also, forced liquidations will still happen (but never at insane prices), but we will eat all the risk. :-(

[ineededausername]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

There are limit orders from the positions of long people. So there will be more selling soon.

Also, forced liquidations will still happen (but never at insane prices), but we will eat all the risk. :-(

Oh dear.... :O
SELLL!

[chunglam]

My sell order also got "No Reserve", why?

[zhoutong]

My sell order also got "No Reserve", why?

This was a code error (the system didn't remove the redflag when needed). I have fixed this already.

[Mushoz]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

There are limit orders from the positions of long people. So there will be more selling soon.

Also, forced liquidations will still happen (but never at insane prices), but we will eat all the risk. :-(

I understand that you will take all the risk of forced liquidations, but what about people that are currently short who would like to liquidate their position _before_ they get forced liquidated?

[ineededausername]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

There are limit orders from the positions of long people. So there will be more selling soon.

Also, forced liquidations will still happen (but never at insane prices), but we will eat all the risk. :-(

I understand that you will take all the risk of forced liquidations, but what about people that are currently short who would like to liquidate their position _before_ they get forced liquidated?

Well, they are screwed

[zhoutong]

ohhhhhhhhhhhhhhhhhhhhhhhh shit  
edit: Do you have a plan for what happens if the market keeps going up like I think it will?

There are limit orders from the positions of long people. So there will be more selling soon.

Also, forced liquidations will still happen (but never at insane prices), but we will eat all the risk. :-(

I understand that you will take all the risk of forced liquidations, but what about people that are currently short who would like to liquidate their position _before_ they get forced liquidated?

Then we have to eat more risk if we allow liquidations of short positions other than forced liquidations.

[chunglam]

Hi Zhoutong, I accidentally input a limit sell order by enter "4,3" instead of "4.3" to the price field but the system interpret it as "4.0" and executed immediately. I know it is my fault but there should be a better way to handle this kind of situation.

[zhoutong]

Hi Zhoutong, I accidentally input a limit sell order by enter "4,3" instead of "4.3" to the price field but the system interpret it as "4.0" and executed immediately. I know it is my fault but there should be a better way to handle this kind of situation.

Thank you very much for your feedback. I will think about a fix soon.

[cypherdoc]

LOL!  please think of a fix that will make everyone money.

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

[Zotia]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

[chunglam]

If you have enough fund, you can change or manipulate market.

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

There are a lot of long positions on Bitcoinica, so anyone with the power to push the price down will cause a lot of forced liquidations, and Bitcoinica will sell at very low prices.

Basically it's you sell X BTC, Bitcoinica will then sell X BTC to you at bottom price.

[Zotia]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

There are a lot of long positions on Bitcoinica, so anyone with the power to push the price down will cause a lot of forced liquidations, and Bitcoinica will sell at very low prices.

Basically it's you sell X BTC, Bitcoinica will then sell X BTC to you at bottom price.

They can always do this.  How is this different from normal?

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

There are a lot of long positions on Bitcoinica, so anyone with the power to push the price down will cause a lot of forced liquidations, and Bitcoinica will sell at very low prices.

Basically it's you sell X BTC, Bitcoinica will then sell X BTC to you at bottom price.

They can always do this.  How is this different from normal?

Now the opportunity is huge. And it's confirmed.

In normal situations, there are not that many long positions.

[chunglam]

Hi Zhoutong, are you sending the signal to "The Manipulator"?

[zhoutong]

Hi Zhoutong, are you sending the signal to "The Manipulator"?

I'm not, but everyone knows this.

So I assume that the Manipulator already knows and I just want to let traders know how serious this can be.