for sure, it is costing his customers who are now starting to walk away.
I would seriously hope they are.
Anyone leaving more than a bit of lunch money on Bitcoinica after all that’s happened is either filthy rich or insane.
I think I can now agree with you that Bitcoinica has harmed Bitcoin as a whole, and is continuing to do so. It’s turning this thing into a pyramid scheme.
Our biggest clients who trade on 2.5:1 leverage have been fine.
We will re-consider our 5:1 and 10:1 options soon.
All the asterisks recently made me think Bitcoinica might be getting slammed back and forth a bit on limited reserves, perhaps pressuring its ability to hedge as well. Reducing the leverage available would lessen that effect, wouldn't it?
Also, just to hear it from you, was there a connectivity issue involved at some point in the last day or two? If so did that ever result in liquidations or not?
Perhaps your could start a thread with a sticky that addresses all these questions that seem to be around? I imagine you are getting a lot of this right now.