币姥爷
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June 5, 2025
Yesterday, Binance launched LA, and there were some issues on gate during the opening. Here's what happened. Because the alpha launched by Binance usually drops after opening, the reason being that those who received it would sell immediately, and yesterday gate simultaneously opened the LA contract. Since LA's opening price was only around 0.5, but gate's LA contract price opened high at 1-2 dollars, many people rushed in to short, but then LA's price skyrocketed, reaching a high of 27 dollars, which meant that the contract positions with 20 times leverage were liquidated, causing many accounts to go to zero in a minute, and some even ended up with negative balances.
According to gate's subsequent announcement, they do not intend to take responsibility for this price fluctuation. From a trading perspective, this should not be considered malicious behavior from gate, but rather a result of insufficient market depth, leading to rapid price increases and decreases. However, I am quite puzzled because theoretically, there should not be such a large amount of long positions available in a short time, yet the liquidation data shows over ten million dollars in liquidations. In fact, many people reported losses of tens of thousands or even hundreds of thousands of US dollars, so where did all that money go?
I believe this incident is still worth noting. I myself am accustomed to engaging in arbitrage, and if I had participated in this LA trading, I would likely also be one of the victims, and it currently seems there is no avenue for appeal. For full margin positions, or unified accounts, smaller exchanges need to strictly control positions, such as transferring funds in batches as margin, or directly choosing to use isolated margin. Additionally, the risk of shorting is much greater than going long.
On the news front, I saw that USDC issuer Circle has completed its IPO, raising 1.1 billion dollars, with a market value potential of up to 6.9 billion dollars. This is a landmark event, showing that stablecoin projects can also become major companies, pointing out another path for various capital. In my opinion, this is a good thing, with a certain out-of-the-box effect, and the growth of dollar stablecoins signifies the potential increase in buying power in the crypto space. There isn’t anything particularly special in the market, just continuing to consolidate sideways, waiting for another push.
Thank you for your attention and likes.
Yesterday, Binance launched LA, and there were some issues on gate during the opening. Here's what happened. Because the alpha launched by Binance usually drops after opening, the reason being that those who received it would sell immediately, and yesterday gate simultaneously opened the LA contract. Since LA's opening price was only around 0.5, but gate's LA contract price opened high at 1-2 dollars, many people rushed in to short, but then LA's price skyrocketed, reaching a high of 27 dollars, which meant that the contract positions with 20 times leverage were liquidated, causing many accounts to go to zero in a minute, and some even ended up with negative balances.
According to gate's subsequent announcement, they do not intend to take responsibility for this price fluctuation. From a trading perspective, this should not be considered malicious behavior from gate, but rather a result of insufficient market depth, leading to rapid price increases and decreases. However, I am quite puzzled because theoretically, there should not be such a large amount of long positions available in a short time, yet the liquidation data shows over ten million dollars in liquidations. In fact, many people reported losses of tens of thousands or even hundreds of thousands of US dollars, so where did all that money go?
I believe this incident is still worth noting. I myself am accustomed to engaging in arbitrage, and if I had participated in this LA trading, I would likely also be one of the victims, and it currently seems there is no avenue for appeal. For full margin positions, or unified accounts, smaller exchanges need to strictly control positions, such as transferring funds in batches as margin, or directly choosing to use isolated margin. Additionally, the risk of shorting is much greater than going long.
On the news front, I saw that USDC issuer Circle has completed its IPO, raising 1.1 billion dollars, with a market value potential of up to 6.9 billion dollars. This is a landmark event, showing that stablecoin projects can also become major companies, pointing out another path for various capital. In my opinion, this is a good thing, with a certain out-of-the-box effect, and the growth of dollar stablecoins signifies the potential increase in buying power in the crypto space. There isn’t anything particularly special in the market, just continuing to consolidate sideways, waiting for another push.
Thank you for your attention and likes.
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