👽✌🏻🔥The B-Book Model: The Conflict of Interest that Fuels Crashes
💸 Does Your Exchange Play Against You?
At the heart of the alleged manipulation lies the B-Book model, a common practice in many exchanges. Under this system, user orders are not sent to the real market but are compensated internally within the same platform. In practice, this creates a direct conflict of interest: when traders lose, the exchange makes money. If the market moves too much against the positions that the platform holds internally, it risks its own funds. With millions of long positions open and moderate leverage (x3 to x4), the incentive to orchestrate a "reset" became enormous for these companies.
🎯 The Mechanism of Programmed Collapse
It took a coordinated sell-off to trigger chaos. Tokens plummeted more than 80%, with prices hitting zero for seconds, an abnormal phenomenon even for a volatile market. These ultra-rapid technical drops triggered a cascade of automatic liquidations, where the positions of thousands of traders were forcibly closed by the systems of the exchanges themselves. This domino effect amplified the drop and allowed the platforms to capture those massive losses, cleaning the order book and "restarting" the market at their convenience, all while outsourcing the blame to macroeconomic factors.
💡 Personal Advice: Before trading, research whether your exchange operates under an A-Book model (where your orders go to the market) or B-Book. Transparency in execution is a pillar of trust that we often overlook.$BTC $ETH
