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This 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

• lokar 3y ago
  And if you are waaaay off the exchange just shuts down your port for the day.
  • patio11 3y ago
    Interestingly the Tokyo Stock Exchange did not countermand an order from Mizuho in 2005 which flipped order quantity and price in yen, a rather catastrophic thing to do when the intended trade was one share for about 600,000 yen. Regulators were… not pleased. (Quick English summary of incident: https://www.foxnews.com/story/typing-error-causes-225m-loss-at-tokyo-stock-exchange https://www.foxnews.com/story/typing-error-causes-225m-loss-... )
    • xoranth 3y ago
      US exchanges tend to either bust or price-adjust clearly erroneous trades retroactively. That is good for unsophisticated customers, but it creates a disincentive for market makers to provide liquidity when there is a fat finger event. That in turn leads to larger price dislocations on such events. (The reason is that the market maker faces adverse selection. Providing liquidity is a bet from the market maker that the price dislocation will revert. Price adjustment reduces the profit the market maker makes from mean reversion. But if the price dislocation was caused by a real news, the market maker will eat the full losses.)