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Alameda lost tens of millions because of a fat fingering mistake

adityabaradwaj.com

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

#51

Earlier quoted context omitted.

You must not know many gamblers. They’ll invent any insane story to explain why they lost, no matter how implausible.

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.

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

#52

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.

Or break your kneecaps. I remember it from a movie whose name I don’t recall

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

#53
post #47
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…

This is my sense too. What's kind of funny is we weirdly get caught up and excited by the hype... every single time

“We” is doing a lot of heavy lifting. I am proud that I have never gotten burned by this sort of thing because I understand that if there’s a lot of hype it’s probably too good to be true.

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

#54
post #7

Earlier quoted context omitted.

Case in point: https://en.wikipedia.org/wiki/Knight_Capital_Group

The number of things that had to go wrong at the same time in the Knight case was large as far as I remember.

I’ve seen straight up attempts to sell a massive amount of a major stock at ~0 due to a single bug and failure of backup checks.

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

#56

Earlier quoted context omitted.

yeah a lot of "dumb" mistakes. whoops accidentally sent to wrong address, which i happen to own the private key too...

rookie mistake. have to send it to a family member’s address so you can claim it isn’t yours - truthfully.

Yeah, easy steal, no traces, Id never believe it’s just a mistake but the burden of proof is on me.

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

#58

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…

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 a very good idea of who has what. I'm not that skilled.

I re-watched the movie "Casino" recently, and there's a scene where the Joe Pesci character cans a floor man for not stopping a slot machine run after the first or second time someone hits a jackpot in a night. Paraphrasing the movie: "Either he was in on or he's a fucking moron, either way we can't have him here". To bring it back to the original topic, I think in the gambling world, the default assumption is that there's a scam and the employee is guilty until proven innocent. I wonder why that wouldn't apply to a shady firm like Alameda, too, unless management was "in on it". Come to think of it, I guess that's the point of my story, which I didn't realize when I wrote it.

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

#59

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…

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?

It sounds like he didn't think he was cheating and that it was a honest mistake.

An escalation (though obviously not to violence) makes perfect sense for a second error of that type, however. It's the kind of mistake that seems innocent enough but if it's deployed in a pattern it can obviously assist the bluffee.

Fool me once, fool me twice, etc. It's not uncommon for dealers to be in on scams, obviously.

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

#60
> The story of how a misplaced decimal point at Alameda Research caused a market crash that echoed around the world

Hang on a second. It caused a dip in the price of Bitcoin, that is not a "market crash". Bitcoin is a toy and not a real market, its price is set almost entirely by bullshit wash trades and other forms of fraud.

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