According to foreign media reports, Peter Brandt, a senior trader, publicly questioned the trade infrastructure of François. The fuse was a partial outburst of bitcoin on August 22: other mainstream platforms were still at prices close to $79,000, and the BTC/USD once fell to $7.25 million in seconds and quickly pulled out of the bottom line.
Cross-platform price differentials increased once
In comparison with the report, Coinbase ' s minimum price for the same period was approximately $758 million. This means that there was a price difference of about $3300 between the two exchanges. Brandt believes that this sharp deviation, which occurs only on a single platform, is sufficient to trigger a strong balance between the loss and loss statements of the platform ' s users and the leverage warehouse.
He also mentioned that similar situations were not the first of their kind and that, by name, there had been serious “sweeping” incidents in the past. The article describes the fluctuations as a local crash, rather than a simultaneous decline in the entire bitcoin market.
Local liquidity zoom down
It was reported that the mobility of the encrypted market was dispersed on different trading platforms. If a platform suddenly encounters a large market price bill, the local order book may not be available for a short period of time to buy enough, the price will be quickly checked down on the platform.
On this basis, the automatic levelling of the leverage position will continue to sell to the market, further undermining the exchange and creating a chain reaction. In other words, the initial liquidity gap may continue to be amplified by strong levelling mechanisms within the platform, which will eventually result in instantaneous lows well below market-wide levels.
The dispute points to a price trigger mechanism
According to the article, the incident once again exposed the risk of a single exchange “up-to-date offer” triggering the protection order. In particular, when liquidity is insufficient or local fluctuations are magnified, losses and improvements may occur only on individual platforms, while other exchanges do not experience a decline of the same magnitude.
Brandt then questioned whether the trading platform provided a sufficiently robust protection mechanism for users under extreme fluctuations. It was mentioned that the impact of isolated plug-in on user slots is generally more likely to be reduced than the direct anchoring of the latest local bargain and reference to mark prices in the wider market.