Binance CEO Changpeng Zhou (CZ) took to Twitter to announce that the companies futures platform suffered a flash crash.
In a tweet that read:
A market maker from a smaller futures exchange tried to attack @binance futures platform. NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that.
Later in the session, CZ took to twitter again to clear a few things up.
It was said that no liquidations occurred on Binance’s futures platform at the time of the sudden price drop, owing to Binance processing liquidations according to an index price.
The tweet did draw some criticism from the Twitterati who felt it was not correct to call out the incident.
CZ also added to his post confirming that the market maker and determined that the flash crash had been accidentally caused by an algorithmic parameter error.
This is not the first time something like this has happened. On the GDAX exchange (June 21, 2017) the price of Ethereum (ETH) fell 99.97% from roughly $318 to $0.10 in seconds. The crash was blamed on a single multi-million dollar market sell order which filled orders from $317.81 to $224.48.
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