How To Whale-Sell Bitcoin online (fast)

Twitter user @ismailtarim977 explained the recent controversy around the huge closure of Bitfinex Shorts.


reddit/user/Touchmyhandle posted a very good ELI5 in the reddit thread:

When you short you are basically borrowing bitcoin to sell, hoping you can buy back later, pay off the loaned bitcoin and pocket the difference. This is called a naked short. If the market moves far enough against you, the exchange will auto close your position (buy back the bitcoin you borrowed using your collateral) this is a called a short squeeze and causes the price to shoot up because the exchange just does a market buy. Every one assumed this was going to happen, buy this guy had already had 20k bitcoin in his account so he closed the position himself.

A very smart whale, if this is what was triggering the short closing.

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Comments 3

Hi, @ash!

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04.07.2019 04:16

Thanks for Sharing now I understand better and more

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04.07.2019 22:01

you're welcome :)

05.07.2019 13:06