A MarketâMaker Friend Speaks Out: What Exactly Happened on the Night of 10/11 at Binance | Let Data and Facts Speak I used to do spotâfutures arbitrage, I have quite a few marketâmaker friends. Many of them knew, directly or indirectly, that I suffered heavy losses. Ironically,
I am C, a marketâmaker friend of 812.eth. At 05:12 on October 11 (UTC+8), as the market began to accelerate downward, my complete riskâcontrol framework and algorithmic systemârunning normally for 1,137 daysâhit a hard limit at Binance for the first time. My strategyâs first
Our logs show both kinds of signals flaring red at the critical time: -1008 and 503 indicate infrastructure and queuing mechanisms had gone into the red, while -4118/-2022 show that riskâreducing orders that should have been prioritized were actively rejected by the business
People have been blaming market makers for withdrawing liquidity and letting prices freeâfall, but the facts are the exact opposite. It wasnât that there was no bidâon the contrary, in extreme volatility, market makers (MMs) are the ones most willing and able to catch the falling
Now, a crucial but often overlooked mechanism detail: âClose All Positionsâ in PM (Portfolio Margin) accounts. This function allows users to choose what asset type their PM accountâs positions are closed intoâe.g., ETH, BTC, LTC, various stablecoins, or staked tokens like WBETH
When âlastâresortâ orders like ReduceOnly/Close are systematically rejected by the platform in the name of overload; when the deepest venue falls deeper because bids canât get in; when the platform as a âprice sourceâ spreads abnormal pricing across the market to trigger chain
@GammaPure Can you provide the logs that showed all your orders were being rejected for 106 minutes on github or something? Would be nice to have this as evidence
@ArthuronHL @Chris_PureGamma please provide that
@GammaPure @threadreaderapp unroll
@GammaPure Thanks for the read. Never dug into your business, but found it very interesting wish you the best in your new side-quest
@GammaPure Wild. Hope this gets sorted out for you. Appreciate the system insights you shared.
@GammaPure this is so fucked , binance is a fucking cancer
@GammaPure @binance @sec had to make an example of them.
@GammaPure Agreed
@GammaPure OMG.
@GammaPure @grok what happened here