Kraken had a series of nasty flash crashes yesterday Of course, the levered kool-aid drinkers are all blaming Kraken but they deserved every cent of those losses. Everyone knows flash crashes happen, I guess some folks need to be burned to learn that fire is dangerous Anyone had tiny bids out there and caught some longs in these?
I saw this on my app, but figured it was just a bad print because none of the other exchanges had this strong dip. Was this legit? Did the price really get this out of whack between the exchanges?
With tether they can clear their shallow order book pretty easily. Then let's go back where it started, nothing to see here. I am surprised it doesn't happen more often.
A few combined pulled orders in an order book and a flash crash where price momentarily dips close to zero are two completely different ballgames. One is to be expected. The other is testimony to a deeply flawed and manipulated asset or trading mechanism.
Sounds like the market is just lacking depth so a large sell order will cut through the order book like a hot knife in butter, crossing all the stub quotes and getting shit fills in the process.
Because from what I gather the 300+ Exchanges can have a different depth of market so Exchange A might have a thin order book on the bid or ask VS Exchange B so if you initiate an order on exchange A you would cut deep in the order book and start crossing stub quotes and getting shit fills.