Everyone in the square is talking about the "517 BTC" gossip from the neighboring competitor, but after looking around, no one has clearly explained the core logic. This is not just gossip; it's a "life-saving lesson" for all contract players! 🚫
【What Happened】
In simple terms, this is a bloody battle of **"Whales vs Platform Risk Control"**.
The parties involved revealed: Back then, due to excessive positions, they were judged by the platform as "malicious market manipulation" and "abnormal trading".
The result was: the account was directly frozen, and even trying to stop losses was impossible, watching the market drop until liquidation, and finally, the 517 large cakes in the account were also "confiscated".
【Core Controversy: Who Sets the Rules?】
@TingHu raised several chilling questions for all traders:
"Early Liquidation": Being liquidated before reaching the forced liquidation line, is this protection or harvesting?
"Frozen Account": Since they perceive risk, why not allow users to close positions and stop losses themselves? Directly pulling the network cable to freeze, isn’t that artificially creating a liquidation?
"Final Interpretation Authority": Take a look at the terms in the announcement — "The platform reserves the right to restrict trading and forcibly liquidate when deemed necessary..." This sentence is terrifying upon deeper thought.
【Seeking Water Interpretation: How Can Retail Investors Protect Themselves?】
Although this is an old story from 2018 about "liquidation sharing" (now major exchanges have risk reserves), the logic still applies:
The platform is greater than everything: In centralized exchanges, your opponent may sometimes not only be the market but also the rule makers. Do not attempt to challenge the platform's risk control bottom line (for example, positions that threaten the platform's liquidity).
Don’t put all your eggs in one basket: Placing 500 large cakes in any single account is a huge risk.
Choose top-tier exchanges: Why has Seeking Water always emphasized liquidity and risk reserves?
When small exchanges encounter such "whale liquidations", in order not to go bankrupt, they can only pull the network cable and implement sharing, making users pay the price.
Only top-tier exchanges with sufficient depth and robust risk funds (those who understand, understand) can withstand such severe fluctuations without needing to "pull" users' network cables.
While we gossip, brothers, take a look at your own accounts; choosing the right platform is really important. 🙏
