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Algorithmic trading bots took the tweet as a sell signal.

• bombcar 4y ago
  Then shouldn’t it have bounced back up when it was shown to be a fake?
  • esperent 4y ago
    Not if real people or other bots followed the lead of the first wave.
    • viscanti 4y ago
      If bots are scraping the twitter front end to grab the checkmark, and making irrational trades now by selling based on the news from parody accounts, humans would buy the dip. The price only stays down if all the rational actors agree the new price is fair, and not underpriced because of a bot mistake.
  • altcognito 4y ago
    Who confirms it’s fake? How does that get fed back into the algorithm in a system designed to work in real time? It’s unlikely that the system has a quick mechanism to do this
    • bombcar 4y ago
      It’d be manual traders realizing there is a pricing mistake. But it didn’t happen which indicates manual traders agree with the drop in general, indicating it wasn’t caused by the tweet.