Binanceus blames algorithm bug for the 87%Bitcoin flash crash

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Von: Krypto News Österreich

The US branch of the leading cryptocurrency exchange said yesterday's heavy flash crash, in which the price of BTC fell from $ 65,000 to $ 8,700 within seconds.

Kryptokartoffel reported yesterday when the Bitcoin price at Binance Us crashed from its almost all-time high to less than $ 10,000. Flash crashes experienced other trading platforms such as octopuses and FTX, since BTC lost more on these two stock exchanges than in reality. Although these flash crash events occur from time to time, a decrease of 87% (the one in Binance US) is something that has attracted public attention. The company decided to explain what in a letter shared with Bloomberg. It is said that the problem from an algorithm defect was.

"One of our institutional dealers informed us that he had a mistake in his trading algorithm, which seems to have caused the sale. We continue to examine the event, but learn from the dealer that he has now fixed his mistake and apparently resolved the problem."

A flash crash is an event in which the price of the underlying is strong before it immediately recovered to its previous level. It could be particularly harmful for retailers who use leverage, since it can liquidate their positions immediately. Another new one at the beginning of October saw btc after a one Massive sales order of over 210 bitcoins again by several thousand dollars on Bitstamp. .