Published on August 3rd, 2018 | by bitcoin0
Traders get short end of the stick with Bitcoin whale’s disastrous losing bet
An “enormous” losing bet on bitcoin last week left one futures trader unable to cover the loss and other traders on a Hong Kong-based exchange to foot the bill.
Because of the sheer size of the order and bitcoin’s price slump the exchange said it couldn’t cover the loss.
As a result, it implemented a clawback policy or what it called a “societal risk management mechanism.”
“That exchange shouldn’t have let someone put that size of a position,” said Brian Kelly, CEO and founder of BKCM.
The cryptocurrency is down roughly 10 percent this week and has dropped roughly 50 percent this year.