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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
#22Here is a good analysis of the flash crash from that day: https://twitter.com/austerity_sucks/status/14523324727258194... - It lasted 12 seconds. - Total BTC traded was 290.54 - Only 2% of that was at price of 10K or below. - Most volume happened in $20-30K range, over 50% discount to mkt. Here is a tweet from someone (rightly) speculating that it had been Alameda: https://twitter.com/TheoryBitcoin/status/14523454117…
The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.
Re: Alameda lost tens of millions because of a fat fingering mistake
#23A 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…
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Re: Alameda lost tens of millions because of a fat fingering mistake
#24Here is a good analysis of the flash crash from that day: https://twitter.com/austerity_sucks/status/14523324727258194... - It lasted 12 seconds. - Total BTC traded was 290.54 - Only 2% of that was at price of 10K or below. - Most volume happened in $20-30K range, over 50% discount to mkt. Here is a tweet from someone (rightly) speculating that it had been Alameda: https://twitter.com/TheoryBitcoin/status/14523454117…
The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.
(Most) trading's not done on chain, it's settled later. Alameda could absolutely trade faster than that.
Re: Alameda lost tens of millions because of a fat fingering mistake
#25[flagged]
Sam Bankman-Fried was associated with effective altruism, not e/acc (although there's a link between the two).
Re: Alameda lost tens of millions because of a fat fingering mistake
#26Earlier quoted context omitted.
The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.
(Most) trading's not done on chain, it's settled later. Alameda could absolutely trade faster than that.
Doesn’t that just mean the trading is done by a trusted third party? Fine until the third party goes belly up.
Re: Alameda lost tens of millions because of a fat fingering mistake
#27Honest 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 mistake. I was tired and my dexterity slipped. The player jumped up, upset the chips and started shouting that I was cheating and in league with his opponent.
The manager came over to calm things down. He was the young son of a mob boss, whose portfolio encompassed a variety of entertainment franchises. In order to calm the player, he pulled me off the table, told me he believed it was an honest mistake, and then threatened my life if it ever happen again. I quit then and there. 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.
[edit] I'm really enjoying that people are enjoying this post, but I want to clarify what I was getting at: The original article assumes that SBF et. al. concluded by some internal mechanism that this was an "honest mistake", and that this is sufficient. That assumption belies the way criminal organizations actually work, which is to say, they wouldn't assume it was an honest mistake, but they'd happily say it was one and let off a patsy if they had orchestrated it. I kind of hope I can tilt the conversation toward this aspect of the OP's revelation?
Re: Alameda lost tens of millions because of a fat fingering mistake
#28Here is a good analysis of the flash crash from that day: https://twitter.com/austerity_sucks/status/14523324727258194... - It lasted 12 seconds. - Total BTC traded was 290.54 - Only 2% of that was at price of 10K or below. - Most volume happened in $20-30K range, over 50% discount to mkt. Here is a tweet from someone (rightly) speculating that it had been Alameda: https://twitter.com/TheoryBitcoin/status/14523454117…
The good news is that the world's Bitcoin network can only process ~100 transactions in 12 seconds.
Has this improved as of late? Maybe with other blockchain systems?
Re: Alameda lost tens of millions because of a fat fingering mistake
#29This happens all the time at traditional finance firms also. For example, last May an investor in the Nordic region sold off hundreds of thousands of shares of an index fund leading to an 8% drop in dozens of stocks https://www.bloomberg.com/opinion/articles/2022-05-03/citi-d...
Re: Alameda lost tens of millions because of a fat fingering mistake
#30Honest 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…
Great story! Thanks for sharing.