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This may work if you could trust the venue that you place the short position with, however if Tether collaborates with the main venues, that won't work, if they

This may work if you could trust the venue that you place the short position with, however if Tether collaborates with the main venues, that won't work, if they can spike the price and wipe out your position. There are suggestions that this occurs, example below. https://twitter.com/Bitfinexed/status/1405037796172222466?s=20 https://twitter.com/Bitfinexed/status/1405037796172222466?s=... ``` PSA: Do not attempt to short Tether. If you obtain a large enough position in Tether, the exchange will leak your position to Bitfinex shareholders who will coordinate to liquidate your short position. This happened on Kraken. Tether went over $400 per tether, twice. ```

gruez 5y ago
>https://twitter.com/Bitfinexed/status/1405037796172222466?s= https://twitter.com/Bitfinexed/status/1405037796172222466?s=... If someone was short and got wrecked by this, I'd expect them to raise a big fuss about this, but that's not happening (maybe it is, but they didn't link to it). Kraken is also one of the more regulated exchanges out there which puts more doubt on it. All in all, the only thing I'm seeing is witnessing an event and making up an explanation for it that fits their narrative, while offering zero evidence to support it.
- anonymoushn 5y ago
  Kraken does apparently offer spot margin (but not to people living in my country), so it's possible for someone to be liquidated in such a situation. The accusations are pretty wild compared to the evidence on hand though.
- yunohn 5y ago
  Why would the price suddenly spike to 1000$ otherwise? What’s a sane reason for this occurring?
  - anonymoushn 5y ago
    Kraken is notorious for trades occurring at non-representative prices across a variety of assets. This happens any time someone places a large limit order and there's not enough liquidity at "reasonable prices" to fill it.
    - Tenoke 5y ago
      Yes, and it's pretty clear that happens in order to make a bigger killing with an opposite side margin trade. There's not that many rich people fat-fingering huge orders all the time..
tedunangst 5y ago
Open interest on futures isn't public info?

gruez 5y ago

>https://twitter.com/Bitfinexed/status/1405037796172222466?s= https://twitter.com/Bitfinexed/status/1405037796172222466?s=... If someone was short and got wrecked by this, I'd expect them to raise a big fuss about this, but that's not happening (maybe it is, but they didn't link to it). Kraken is also one of the more regulated exchanges out there which puts more doubt on it. All in all, the only thing I'm seeing is witnessing an event and making up an explanation for it that fits their narrative, while offering zero evidence to support it.

anonymoushn 5y ago
Kraken does apparently offer spot margin (but not to people living in my country), so it's possible for someone to be liquidated in such a situation. The accusations are pretty wild compared to the evidence on hand though.
yunohn 5y ago
Why would the price suddenly spike to 1000$ otherwise? What’s a sane reason for this occurring?
- anonymoushn 5y ago
  Kraken is notorious for trades occurring at non-representative prices across a variety of assets. This happens any time someone places a large limit order and there's not enough liquidity at "reasonable prices" to fill it.
  - Tenoke 5y ago
    Yes, and it's pretty clear that happens in order to make a bigger killing with an opposite side margin trade. There's not that many rich people fat-fingering huge orders all the time..

tedunangst 5y ago

Open interest on futures isn't public info?