This is a bit funny, but sad, considering they're the biggest futures exchange in bitcoin. OKCoin has been pretty glitchy recently. Last week, its LTC/CNY orderbook glitched and went down to 0.03 CNY, they later blamed it on a "hidden bug" (?) in the trading engine. Alright I guess, par for the course in China...
This is really a bad precedent being set by Gemini and the Winkelvoss twins. For serious, institutional traders, this confirms that there's no reason to use them. Why would you be wasting your money to provide liquidity by putting orders in the orderbook to create depth, when "user error" is enough of a reason to simply reverse any orders that get filled?
Remind me why anyone would trade bitcoin at Gemini again?
So today was settlement at OKCoin, and there was a hanging margin call which I mentioned in a previous post. Many traders were concerned that in the event of a selloff, this lingering liquidation would stack socialised losses that the system would not be able to sustain, as the insurance fund was wiped out.
But have no fear, the Woodchipper is here! There was some interesting price action not only in the Futures market but in the Chinese spot market for bitcoin. As can be seen in the image above, OKCoin CNY, along with Houbi and BTCC, made an awkward surge, with OKCoin CNY overshooting by 20 CNY. This was at the exact level where the 18,000 contract margin call was waiting to be filled.
Once the wall was eaten, the spot and futures markets both dropped and have trended downwards in the hour following.
Very interesting price action indeed. If one was conspiracy-minded, one may think that there was some collusion behind these events.