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Alameda lost tens of millions because of a fat fingering mistake

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Re: Alameda lost tens of millions because of a fat fingering mistake

#61

Post by artursapek »

keyle wrote: post #32

Reading stories like this makes me wonder why I don't have a long term trade in place for a low amount and hope to fish a good one during a flash crash. Seen them on the stock market too. Back in my day I wrote a few trading bots, they never went anywhere positive after about a week of profit. Seems to me now that the smartest robo-trader algorithm is... 10 wait for human mistake... 20 goto 10

Yes we call this a stink bid, and it’s a valid strategy. Keep one open just in case. Most exchanges have slippage protection in place but some are better at it than others.

Re: Alameda lost tens of millions because of a fat fingering mistake

#62

Post by sneak »

noduerme wrote: post #27

Honest question: How do you determine that something like this was an honest mistake? Once, when I was much younger, I had a side gig dealing poker at an underground club in NYC. One morning at the end of 10 hours dealing, I accidentally exposed a burn card which turned out to be something one of the players was representing (bluffing), with about $10k on the table. It was an honest mistake - literally a fat finger m…

> Honest question: How do you determine that something like this was an honest mistake?

Good question. It's not like the errant trader couldn't have had a friend of a friend put in a bunch of $10k limit buys the day before, knowing the price would recover nearly instantly...

Re: Alameda lost tens of millions because of a fat fingering mistake

#63

Post by thaumasiotes »

noduerme wrote: post #58
cperciva wrote: post #36

Earlier quoted context omitted.

Not a poker player, so maybe I'm missing something obvious, but: How did he think you were cheating? You had no way of knowing what that card was, right? And if you did somehow know what it was, surely you could have pre-arranged more subtle ways to tip off a player you were conspiring with?

I guess they thought I produced the bluffing player's card to prevent the other player from folding. But you're right that a dealer who was trying to do that could've done so in any number of subtle ways. I couldn't really figure out why they were accusing me at the time, or what I would've gained from it, but it all happened very fast. There are dealers who are true shuffle mechanics and either know for sure or have…

> there's a scene where the Joe Pesci character cans a floor man for not stopping a slot machine run

Robert de Niro. Joe Pesci plays a thug.

Re: Alameda lost tens of millions because of a fat fingering mistake

#64

Post by steveBK123 »

andirk wrote: post #13

A lot of the "genius" credit given to FTX, Alameda, Sam are all during a time when crypto was soaring, probably partially because people were home more and got free checks in the mail. The fact that a single person could absolutely tank the entire company with a single trade shows how reckless they all were. But it worked because the market was going up. That's it. The market slumped for like a week and their behavio…

also don't discount sporting events being closed/reduced and sports betting dollars moving to crypto

Re: Alameda lost tens of millions because of a fat fingering mistake

#66

Post by noduerme »

School-Cotton wrote: post #51
lacrimacida wrote: post #49

Earlier quoted context omitted.

I guess. What I don’t know is whether you can call a misdeal and cancel the round. But if you’re the one who’s not advantaged by the situation will probably be upset if you had a good hand. I suspected there are rules for such a scenario since Im sure it was not the first or last time occuring…

In a casino the hand would not be canceled for that. The card would just be burned.

In this game, the hand was rewound and nullified. I can't speak for what a legitimate casino would do.

Re: Alameda lost tens of millions because of a fat fingering mistake

#67

Post by fouc »

tapotatonumber9 wrote: post #48
0xDEAFBEAD wrote: post #34

Earlier quoted context omitted.

How does the hand end in a case like that?

They take you out back and cut it off with a circular saw. At least then there’s no more “fat fingering” to worry about.

Answering the wrong question lol

Re: Alameda lost tens of millions because of a fat fingering mistake

#69

Post by gabcoh »

keyle wrote: post #32

Reading stories like this makes me wonder why I don't have a long term trade in place for a low amount and hope to fish a good one during a flash crash. Seen them on the stock market too. Back in my day I wrote a few trading bots, they never went anywhere positive after about a week of profit. Seems to me now that the smartest robo-trader algorithm is... 10 wait for human mistake... 20 goto 10

If you aren’t paying attention you just might end up trading on a real crash too.

Re: Alameda lost tens of millions because of a fat fingering mistake

#70

Post by FireBeyond »

noduerme wrote: post #27

Honest question: How do you determine that something like this was an honest mistake? Once, when I was much younger, I had a side gig dealing poker at an underground club in NYC. One morning at the end of 10 hours dealing, I accidentally exposed a burn card which turned out to be something one of the players was representing (bluffing), with about $10k on the table. It was an honest mistake - literally a fat finger m…

I once watched a new (I assume) dealer make two large mistakes at a blackjack table, in Vegas, of all places.

One, I had put down $500 in twenties, and he was giving me chips, except he was going to give me $1,250 in chips, like he thought they were fifties. Pit Boss looked at him, looked at the chips, "What are you doing??", let him fix the error.

A couple of hands in, dealer gets an Ace, so he checks the hole card. Satisfied, he continues, and we all bet and play out the hand, until he goes to turn over the hold card... and has Blackjack with a King.

Pit Boss again, situation explained, voids the hand and returns everyone's stake to them.

What blew my mind was that after two mistakes like this in a matter of minutes, the dealer wasn't pulled off the table.

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