> Noone taking the other side of that short.

> Is entirely fallacy/fantasy when people talks about shorting on crypto market.

What do you mean by this? I shorted FTT the second I saw the tweet, and then I shorted the entire cryptocurrency market. I successfully made money, so how could it be a fantasy?

You are right, but we are talking about binance shorting big amounts of tokens, not you shorting some amount in their own game

Tell me who at the same level of insider info, gonna OTC borrow you millions of FTT for you to short, when most likely that person/entity owning millions of FTT is already trying to protect their value?

You have to remember that when you short and you bet for price going down, the other side is betting for price going up or at least for the price to stay at the same levels, the person borrowing you has to be constantly doing DD to be sure that its the right moment to borrow the asset, and its pretty obvious that someone holding big amounts of FTT was/is very aware of whats comming

if I was an OTC shorter and had millions of FTT and you see Binance CEO comming to you to short, I inmediatly said no and cashed out those FTT instead of shorting, cause clearly at those levels there is certainty of what they are doing.

I only shorted FTT at first. Then I shorted BTC and BNB instead when I realized this was going to crash the market. For some reason BNB was massively overbought yesterday. Binance hype or something. Almost reached 400 USD. I shorted it at the top and watched it melt down to < 300 USD.

God I wish I could be this lucky every single time.

They don't need to short FTT. They can short BTC. This is having a big impact on the whole market, and is going to continue to.

It works, until it doesn't. When volume drops, it's possible to harm lots of people who were short like this by pumping to force liquidation and then handling the liquidation and dumping (taking money from every side). It happened during the Luna/Terra crisis. Shorting LUNA was high risk because there were at least some players who burned others frequently on the path down.

Work at a trading firm and we saw the entire thing play out, but we're algorithmic so we weren't set up to take advantage.

Though if you're a small player, there's a lot of opportunity here. Some times, the difference between the price for liquidation and the price you can get somewhere else is high. We saw one dude make a quick $300k through a flash loan. The market isn't fully efficient yet, so this opportunity was available for 10 min before someone took it.

> force liquidation

> there were at least some players who burned others frequently on the path down

I don't know. If there's a risk of getting liquidated during one of those minor reactionary pumps, the position is probably overleveraged to begin with. Also, do people not configure a stop loss?

Market places knows where is your stop loss... You play again them.

It should not be, but it's a scam and unregulated.

I made the painfull experience of it with a future on DJIA in 2009, and it was a regulated market place (CBOT, i think)... I was long because I supposed a reversal of the bear market. I put a stop loss at 8000$ or something. Price went just 1 tick (0.01$) under my stop loss then went up.

It happens market place members (big players or market makers ; you pay to be a market place member which give you some advantages over regular traders) have full visibility of market orders book, but not retail traders. So they have access to your stop loss order. So then can put pressure on prices whatever the direction to force you to close your trade until orders book on one side at a price level is empty and the price can only reverse course.

Yeah, I'm sure you've run the math on it and have the right leverage, but it's a hard game for retail to play.

It's not just FTT/FTX, though. They're probably taking down others with them. Looking at the books gives you an idea of who the "others" are and how screwed they are.

If you have enough capital couldn’t you weather the artificial movements to be able to capture the natural downward movement. VTT is going to zero if VTX liquidated in bankruptcy.

Is it any better if he is able to liquidate longs based on the balance sheet that he would not have liquidated had he not seen the balance sheet?

we are all ignorants about the reality here, so we are all guessing

but when you have to guess stuff about the crypto market, you literally have to think the worst things or the best things and you will be right

my guess here is simple, CZ has liquidated everything that can be liquidated that doesnt make him look bad, hes deep in the very same business than FTX/Sam was, he doesnt need to look the balance sheet, chances are his balance sheets are similar or worse haha

So he probally liquidated longs if any, he probally did OTCs with other tokens/assets and just kept the FTT as a PR move to pretend he was a nice guy, anyways having an amount of $ "lost" by a token that was never worth anything is still 0 lost, he most likely got those tokens in exchange for other tokens worth nothing, or during ICOs stage so pretty much hes not losing any cash even tho you will read people saying how much he lost, remember all of that is nominal value, not real cash value at the end, the very same reason things are falling now.