How Two High-Frequency Traders Exploited an Exchange Loophole
The post How Two High-Frequency Traders Exploited an Exchange Loophole appeared on BitcoinEthereumNews.com. Crime The recent price surge and subsequent chaos surrounding the cryptocurrency VOXEL on the Bitget exchange has ignited a heated dispute, pitting a market maker against the platform. In an exclusive interview with Wu Blockchain, the market maker operating under the pseudonym “qntxxx” detailed their perspective on the incident, claiming to have legitimately profited $43 million through standard trading practices. Bitget, however, has labeled the activity as “illicit,” alleging that a professional arbitrage syndicate exploited the situation to gain over $20 million. Market Maker’s Account: Fair Trading and Order Book Interaction qntxxx, who operates as part of a two-person high-frequency trading team, explained that they began their journey in early 2022 and found success as contract market makers on Binance following the LUNA collapse. They transitioned to exploring smaller exchanges like Bitget and Gate in late 2024, eventually becoming spot and contract market makers on Bitget. According to qntxxx, the opportunity arose during a period of low market volatility. Their strategy involves placing orders across numerous trading pairs, and significant price movements trigger an increase in position size and the deployment of more sub-accounts. Observing high trading volume in VOXEL, they initially engaged with the token. When profits began to scale dramatically, they ramped up their operation to approximately 100 sub-accounts. qntxxx drew a parallel to the LUNA incident, where their team utilized hundreds of accounts simultaneously amidst chaotic price action. They stated that the “chaotic candlestick movements” in VOXEL’s order book perfectly aligned with their high-frequency trading strategy, ultimately leading to the $43 million profit. Addressing Bitget’s claim of $20 million in withdrawals by flagged accounts, qntxxx stated their team withdrew around $10 million, while Binance froze several hundred thousand from their accounts. They acknowledged the possibility of other market makers being involved but emphasized the short trading window.…
The post How Two High-Frequency Traders Exploited an Exchange Loophole appeared on BitcoinEthereumNews.com.
Crime The recent price surge and subsequent chaos surrounding the cryptocurrency VOXEL on the Bitget exchange has ignited a heated dispute, pitting a market maker against the platform. In an exclusive interview with Wu Blockchain, the market maker operating under the pseudonym “qntxxx” detailed their perspective on the incident, claiming to have legitimately profited $43 million through standard trading practices. Bitget, however, has labeled the activity as “illicit,” alleging that a professional arbitrage syndicate exploited the situation to gain over $20 million. Market Maker’s Account: Fair Trading and Order Book Interaction qntxxx, who operates as part of a two-person high-frequency trading team, explained that they began their journey in early 2022 and found success as contract market makers on Binance following the LUNA collapse. They transitioned to exploring smaller exchanges like Bitget and Gate in late 2024, eventually becoming spot and contract market makers on Bitget. According to qntxxx, the opportunity arose during a period of low market volatility. Their strategy involves placing orders across numerous trading pairs, and significant price movements trigger an increase in position size and the deployment of more sub-accounts. Observing high trading volume in VOXEL, they initially engaged with the token. When profits began to scale dramatically, they ramped up their operation to approximately 100 sub-accounts. qntxxx drew a parallel to the LUNA incident, where their team utilized hundreds of accounts simultaneously amidst chaotic price action. They stated that the “chaotic candlestick movements” in VOXEL’s order book perfectly aligned with their high-frequency trading strategy, ultimately leading to the $43 million profit. Addressing Bitget’s claim of $20 million in withdrawals by flagged accounts, qntxxx stated their team withdrew around $10 million, while Binance froze several hundred thousand from their accounts. They acknowledged the possibility of other market makers being involved but emphasized the short trading window.…
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