Crypto Exchange Bitfinex Sees Over 10,000 Bitcoin Shorts Close Due To Maintenance


Bitcoin had made an impressive rally to over $13,000 just a few hours back. These volatilities were bound to attract deep corrections and that’s exactly what happened. The price has dropped almost $2,000 to close to $11,000 now and one of the major reason it happened was because of a massive $117 million worth of bitcoin shorts on Bitfinex.

The candle graph of this short sell looks very distinctive with a huge red plunge, as it can be seen in the graph below.

Bitfinex massive insta shorts close, July 2019

Moments after these short sells happened, the exchange shut down for unscheduled maintenance.

After a couple of hours of blackout, the site was up and running again.

 

The details of this unscheduled maintenance are yet to be made public b the company, but we all can guess why they had to do it. Many on social media took notice.

Some people are skeptical about the whole thing and took the opportunity to take a jibe at the exchange.

When asked to comment about the situation, Paolo Arduino, CTO at Bitfinex, says:

“Someone claimed his short position. A few weeks ago happened with a short 20k.”

When later asked why did he have to do the unscheduled maintenance, he replied:

Bitfinex explained the “claim” to their position by saying:

“Claiming a position is essentially converting from a margin trade into an exchange trade; closing the position by buying it yourself and settling your funding costs to the lender. Because of this, there is no trading activity on the order book.”

This explains a bit of the problem. The massive claim resulted in Bitfinex losing 60% of their Bitcoins.

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