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…
Alameda lost tens of millions because of a fat fingering mistake
171–180 of 197 posts
Re: Alameda lost tens of millions because of a fat fingering mistake
#172Honest 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…
> Only after I had quit and refused to come back do I think he actually knew for certain that I wasn't pulling a scam. In interactions of bluff, bluff, and double bluff suspicion never dies. Quitting indignantly on principal is either a sure sign of innocence or a true con artist cutting and putting distance from a 'scam', staying can be just as ambiguous. I'm not doubting your innocence here, just doubting that ther…
I'm sure the doubt remained. What you wrote kind of reinforces my point that it's very hard to be sure that an expensive mistake was an honest mistake.
Personally, though, I didn't quit to try to double-bluff. I'm a self-preservationist. I'm in the business of keeping myself alive, and I draw the line at working for someone who threatens me.
I'm aware that quitting could've seemed shady, but at that point it was the least of my worries. And I doubt it's the normal course of behavior, either, if someone were caught skimming. Someone who was guilty of malfeasance, who was offered to keep the job, would have almost certainly chosen to stay and lay low while finding some new way to scam them, because that person needs either the money or the frisson. I enjoyed 'em both but I didn't need either enough to risk my life on another accident.
Someone who lacks any trust will always find reasons to assume the worst, as you say. There's a bit of a corollary, though, in my experience, which is: People who choose to continue working around those people also mostly can't be trusted. And I feel like the trust-less parties are well aware of that.
Re: Alameda lost tens of millions because of a fat fingering mistake
#173Honest 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.…
Re: Alameda lost tens of millions because of a fat fingering mistake
#174The Athlete's Glitch
Our client team had an amazing NFL season. But with the start of a new NFL season, but our NFL team was buzzing for a different reason – the unveiling of our off-season updates to the beloved iPad app used by one of the major NFL teams.
Our app, which was primarily used for training and past game analysis, had undergone a major overhaul, and we were proud of the sleek new UI/UX designs. But just as the athletes started to get into the grind of their training, our office started receiving some unexpected feedback.
"Hey! The app is taking me to the wrong sections!" one message read.
"I keep hitting the wrong button. Something's off," said another.
Confusion took over our team. We had spent months meticulously planning, designing, and testing these updates. Automated tests had been executed to perfection, internal testing hadn’t shown a single glitch. What was happening?
Then, a video came in. It was from a coach, showing one of the top athletes trying to use our app. We watched intently as his fingers moved over the screen. The problem became immediately apparent: his fingers, sculpted by years of athletic training and naturally larger than the average, were simply too big for our redesigned interface. Every time he tried to tap a specific function, his finger would unintentionally touch the adjacent ones.
Turns out, in our endeavor to create a sleeker, modern UI, we had inadvertently shrunk the size of the clickable buttons and packed them tightly in a grid. This might have looked aesthetically pleasing and worked perfectly for our testers, but for the athletes with their robust fingers, it was a recipe for frustration.
We convened an emergency meeting. Our lead designer, Marcus, broke the silence, "Our primary users are these athletes. We should've considered their physical attributes in our designs. It's my oversight."
Our project manager, Clara, nodded in agreement. "We need to fix this and roll out an update ASAP. We can't have the team struggling with this during their crucial training period."
The next few days were a blur of coding, designing, and testing. With feedback from some of the players, we reintroduced larger buttons and ensured enough space between them, all while maintaining the sleek look of our new design. It was a lesson learned the hard way, but it reiterated the importance of understanding our users' needs and physical attributes.
The next feedback we got was from the star quarterback, "Perfect! Back in the game with this. Thanks, TechTouch."
The NFL season kicked off with roaring crowds, and our app, now more user-friendly than ever, was right there with the athletes, assisting them every step of the way.
Re: Alameda lost tens of millions because of a fat fingering mistake
#175Earlier quoted context omitted.
> the total (ostensible) value of all coins that have been mined in a given cryptocurrency. These values should be taken with a hefty grain of salt, as they are considerably larger than the total value that could be realized if holders of a currency decided to try to cash out.
You realize that this is how valuations for publicly-traded companies are calculated, right? Also the networths of people whose vast majority of wealth is tied to publicly-traded shares.
Re: Alameda lost tens of millions because of a fat fingering mistake
#176Earlier quoted context omitted.
Based on the second mistake, on pure speculation, I think that might've been a dealer who recently came from Eastern Europe, where typically dealer blackjacks are not announced until the end of the hand (a significant loss in EV for the players). Since never exposing a card early is the one thing that's most drilled in, exposing one is counter to training, and that might be a hard habit to break. A lot of Eastern Eur…
Then why would he have checked the card?
Re: Alameda lost tens of millions because of a fat fingering mistake
#177Earlier quoted context omitted.
IBM is still worth money if their stock gets delisted. Real estate, buildings, equipment, patent portfolios. Bitcoins is worth $0.
Those buildings and equipment and patents may have value, but less than the bonds, loans, and other liabilities IBM also has. Not only could IBM be worth $0, it could be worth less than that. Things are worth whatever people are willing to pay. Bitcoin may be the original sin of crypto bros, but it still appears to be worth money, because it's impossible to make one for free, or obtain one for free. And it has utilit…
> a company is just as fictitious as bitcoin
Nonsense.
Re: Alameda lost tens of millions because of a fat fingering mistake
#178Earlier quoted context omitted.
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.…
> after two mistakes like this in a matter of minutes, the dealer wasn't pulled off the table. Does anyone know what the dealer training looks like in practice? I assume people will make silly mistakes for a while. Are they expected to practice until perfection before they start working?
Would love to have a properly trained Vegas dealer weigh in here.
Re: Alameda lost tens of millions because of a fat fingering mistake
#179Earlier quoted context omitted.
> It is also clear that the frontends really need to be hosted in a way that they can't be modified. Years ago the advice was IPFS and IPNS. I agree. This is not the Web3 dream everyone was promising us when frontends and nft media assets themselves are mutably stored on some server relying on serveral entities in the DNS chain to maintain security, behave, and stay available.
I wish there was a way we could almost hash a website or a piece of the critical path code running the site so that you know the content on the page was not modified and that the code that is executed is what the site intended. We kind of have the 'secure lock' with https doing part of the work, but it is kind of irrelevant if DNS is pointing to some hackers site. This isn't just crypto... it is your bank too.
Further we used to have HPKP to further protect the security chain but it ended up being dangerous for various reasons. Monitoring certificate transparency logs for any re-issuences of your domain's certificates is the current detection method as http is pretty heavily penalized in todays browsers.
Re: Alameda lost tens of millions because of a fat fingering mistake
#180Earlier quoted context omitted.
I thought the real market also has circuit breakers in place. If the market falls X% too quickly, trading is halted for some amount of time.
That applies to the whole market, not necessarily a single stock.