“Another day in crypto. We do have price band protection, but a user’s algo went ballistic and sent multiple orders to achieve this. We will likely have to adjust this chart a bit so that it’s readable in the future.”
It’s very unfortunate they’ve ‘adjusted’ this chart because now we can’t see what exactly happened and at what time exactly, making this ‘adjustment’ a tampering with evidence.
So next time guys please take screenshots, preferably on 1 minute candles or even 1 second, and ping them to us because now we have to guess what happened instead.
The tweet sent out by Zhao was 9 hours ago, making it 7AM London time, with the screenshot itself saying 1:54.
That’s most likely Shanghai time as it corresponds to 6:54am London time. So he took the screenshot just before he made the tweet and now we can also guess he’s probably in China or in that region.
It is probable before sending out this tweet he would have been very busy sorting out the situation at hand or at least figuring out what exactly happened, with a hack obviously not excludable before a full investigation.
So that may have taken some time, and therefore it looks very likely this $100k was before the crash at 4:37AM UTC, making it 5:37am London time.
The crash itself was fairly small in bitcoin, but much bigger in eth which nearly reached $420, a fairly big resistance line.
Very typically this all happened in about five minutes, and it’s all over in about ten minutes or so.
Based on all these facts, what happened seems to be somewhat obvious. Someone cleared the order book all the way to $100,000. Plenty rushed to give this generous whale their coins. The floor was then taken underneath them and so they overshot to $10,500.
Then everything gets back to normal with ethereum edging towards higher still at now $370.
The direction of the ‘glitch’ can also be a bit revealing because it gives us the $100k meme huge number and also because it has cleared the order book up, not down.