I truly believe it did. I used to arbitrage a couple of years ago, but thats as far as my knowledge goes with forex/bitcoin wording. I know what shorting and long are. I think some people made a killing (possibly insider) from this, but a lot of people lost their shorts(no pun intended). So, when does the bleeding stop?
Are their sites that tell us how much is still shorted? I think the most of the bleeding has stopped, but not totally..I would like to get others opinions that know what they are talking about. and when you explain things, dummy it down for me, lol...
Another thing Ive heard is that chinese exchanges are pulling a mt gox, but i dont believe that, I think most of them provide leveraging services and it was caused by my main hypothesis.
Probably, however this is not 100% for sure, at least not yet.
The amount of outstanding swaps on bitfinex has dropped by ~$10 million in the past several days so it is clear that a lot of positions on that exchange have been liquidated. There have also been numerious news reports saying that the crash has been caused by massive amounts of margin calls.
