NADA is too ugly to eat

Let's take a look at an announcement first: Gate.io Regarding the follow-up treatment of abnormal fluctuations in the NADA perpetual market on April 11, 2024, the NADA perpetual contract market has abnormal fluctuations at around 2:45 a.m. on April 11, 2024, East 8th District time, and the fluctuation range is much greater than that of the spot market. NADA Price Fluctuation Period: 2024-04-11 02:45-2024-04-11 03:10 East 8th District Time After the investigation of the overall situation of the NADA perpetual contract market is completed, we will issue another announcement as soon as possible to explain the situation and give a solution. Prior to this, it is not recommended for users to continue any operations in this market except for closing positions and fund transfer operations. Yesterday morning at 2:45-3 a.m., a giant needle harvested all the arbitrageurs involved in NADA.
The basis of the highest point of the contract price and the spot price is 0.1U, and 0.1U may not feel much when you look at it, but for a coin with a price tag of about 0.013U, the basis is 684.5% on a 100% basis. The difference between the spot and the contract is 6.84 times, which I have never seen before. The contract and the spot market are two trading markets, but these two markets are related, even if a large institution wants to sit on a currency, first of all, it must be enough spot chips, only the control of spot chips is qualified to go to the contract market to sit in the bank, with spot chips can operate the price, someone dares to place a short position, do his counterparty, he will let the spot price higher than the contract, with a negative funding rate to consume shorts, and finally force the bears to retreat, a large number of shorts, resulting in a rise in the contract market price, long profits, short losses. The most outrageous direct closure of spot chip recharge and withdrawal channels is due to blockchain network problems
NADA on other exchanges can be withdrawn and recharged, indicating that there is no problem with the network, here is to maintain the spot price overflow, because he uses the index weight to calculate the funding rate, and then he secretly excludes the index weight of his own exchange, because it does not publish the elimination rules of the basis difference constant. Generally, the basis of more than 5% of the exchange will be eliminated, so he has always kept the funding rate positive, attracting countless arbitrageurs to eat the funding rate, 1%-2% in 4 hours, and 6%-12% in a day. Arbitrage is a normal phenomenon and is a mechanism to maintain the normal direction of market prices. Arbitrage is, of course, risky. But the arbitrageur was introduced into the game like this as a pig and a dog, this is the first time, I don't know what to think. If the spot contract rises and falls, the currency is liquidated because of the great changes in the market, resulting in the liquidation of the short arbitrageur, then there is nothing to say, even if a contract player is liquidated, he is willing to gamble and lose, everyone including the arbitrageur will not say anything at all, because the arbitrageur is holding the same amount of spot chips in the contract, and the price can be sold in time when the price is pushed up, and the spot loss of the contract is made up, if the contract is pulled too fast, the spot may be sold too quickly due to insufficient liquidity, and there will be a loss, but this is the normal wear and tear risk of arbitrage。 It's very controllable. Instead of a single-burst contract market. But the arbitrageur who lost millions of U last night was not due to wear and tear, but because someone pulled the NADA contract market wildly, and pulled the contract out of the spot market by 6.84 times in 15 minutes , Because the leverage of arbitrage is very light, it is basically 1-3 times the capital, not the exchange who knows where the bottom line of the short arbitrage person is, after the liquidation is the short funds are quickly closed, at this time he himself quickly closed the short, but at this time there is a trading volume of 55 million u, and the counterparty he needs to short the position is not enough, and the counterparty is only the exchange and market maker. When NADA was arbitraged, the funding rate eaten by the bears was also contributed by the exchange itself and a small number of market makers, but the market makers are a very small part, because the liquidity of the contract is too sufficient, and it is obvious that they are brushing their own brushing behavior, which is abnormal, why do I say that, because when market makers buy and sell contracts, there must be the most hedged spot in their hands, otherwise this market making will not be executed at all. Beyond that, who else can do it. When the opponent is not enough, what will they do is not to let you close the position successfully, it must let you liquidate the position. The money from the liquidation becomes the funds in the fund pool and becomes the funds of the exchange. And they laughed happily. Please take a look at this picture This is what the fan sent me: It says Failed to make a long pending order. The pending order will fail, and the price will not be allowed to exceed the stop loss. What kind of technology is this, what kind of food, it's too ugly
Playing injections on the ancient exchange is also to pull chips with the spot price, because they will not let the market makers die, thousands of market makers contribute liquidity to earn those liquidity differences, only about 0.2-2% a day, usually not higher than 0.2%. Small currencies Because of the lack of liquidity, the market can generally achieve a profit of 2% per day in conjunction with the contract market. But the death of nada arbitrageurs is really wronged, I have received, some people lost hundreds of thousands of U, some people lost tens of thousands of U, some people thousands of U, and so on. Then they all approached Gate's customer service, and then the customer service said that this was normal market behavior. But not long after, under pressure, such an announcement came out. I hope that GT can give a reasonable solution to the user loss of abnormal liquidation in the long-term business idea, otherwise you will eat these millions of U like this, and a large number of users will also leave you. They will also lose a large number of contract players, because everyone who plays later may be liquidated in this way. There is nothing to say about losing to the market, and no one is convinced by the man-made disaster of conspiracies and tricks.