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<div class="watcher-guru"> 
 <p>An ex-employee&nbsp;of Alameda Research recently unveiled that Sam Bankman’s Alameda Research instigated Bitcoin’s 87% crash in October 2021. In a matter of a few minutes, BTC temporarily lost more than 4/5ths of its value on Binance.US and dropped to $8200. On most other exchanges, it was trading normally in the $65,000–$66,000 price bracket.</p> 
 <p>Aditya Baradwaj revealed that most of <a rel="noopener noreferrer nofollow" title="Alameda" href="https://thebittimes.com/tag/alameda.html">Alameda</a>’s trades were executed using algorithms. However, traders could also manually send orders. This helped them capitalize on the market’s volatility and make gains. Retrospectively, this is what caused BTC’s flash crash at the height of the 2021 ‘double top’ bullish phase. Baradwaj alleged that an <a rel="noopener noreferrer nofollow" title="Alameda" href="https://thebittimes.com/tag/alameda.html">Alameda</a> trader’s “finger slipped,” and that unfolded the catastrophe. He outlined, </p> 
 <p><strong>“The trader was trying to sell a block of BTC in response to the news and sent out the order via our manual trading system. What they missed was that the decimal point was off by a few spaces. Rather than selling BTC at the current market price, they sold it for pennies on the dollar.”</strong></p> 
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    <p lang="en" dir="ltr">PART 2: THE FAT-FINGER<br><br>or<br><br>The story of how a misplaced decimal point at Alameda Research caused a market crash that echoed around the world.<br><br>(1/n) 🧵#SBF #FTX pic.twitter.com/jCykh6rg1o</p>— Adi (e/acc) (@aditya_baradwaj) September 20, 2023 
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 <p><strong>Also Read: 95% NFTs Have a Market Cap of 0 Ether</strong></p> 
 <h3 class="wp-block-heading" id="h-messing-up-the-decimal-point-was-an-honest-mistake-ex-alameda-employee">Messing up the Decimal Point was an Honest Mistake: Ex-Alameda Employee </h3> 
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 <p>Right after the trade, the 87% crash was immediate. Arbitrage traders ended up taking advantage of the mispricing and restored Bitcoin to normal levels. Nevertheless, <a rel="noopener noreferrer nofollow" title="Alameda" href="https://thebittimes.com/tag/alameda.html">Alameda</a> lost millions of dollars. At that time, Binance.US claimed that the price drop was caused by one of their “institutional traders” who had a “bug in their <a rel="noopener noreferrer nofollow" title="Trading" href="https://thebittimes.com/tag/trading.html">Trading</a> algorithm,” but never revealed the name. Baradwaj claimed that CEO <a rel="noopener noreferrer nofollow" title="Caroline Ellison" href="https://thebittimes.com/tag/caroline-ellison.html">Caroline Ellison</a> possibly “made some phone” calls to cover up. </p> 
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  <img decoding="async" width="1024" height="447" src="https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp" alt class="wp-image-112864" srcset="https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 1024w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 300w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 768w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 380w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 550w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 800w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 1160w, https://cdn.thebittimes.com/images/2023/09/21/62978f8926584478b3ce6ecb910a9d31.webp 1196w" sizes="(max-width: 1024px) 100vw, 1024px"> 
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    Source: CryptoSlate 
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 <p><strong>Also Read: BitBoy Raises $50000 in 5 Hours: Crypto Community ‘Pissed’</strong></p> 
 <p>It was trade execution was an honest mistake, the former <a rel="noopener noreferrer nofollow" title="Alameda" href="https://thebittimes.com/tag/alameda.html">Alameda</a> Research employee claimed. The firm implemented additional sanity checks for manual trades. Revealing <a rel="noopener noreferrer nofollow" title="Bankman-Fried" href="https://thebittimes.com/tag/bankman-fried.html">Bankman-Fried</a>’s philosophy, Baradwaj alleged that the utility gained by moving fast outweighed the occasional costs paid due to poor risk checks and hacks. He added, </p> 
 <p>“<strong>That’s usually how things worked at Alameda – we would wait until something broke, and then rush to fix it. Which is why it took us so long to implement sanity checks that any “traditional” trading firm would have never started trading without.”</strong></p> 
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 <p><strong>Also Read: Binance.US Trade Volume Drops 99% From $5 Billion to $40 Million</strong></p> 
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<div class="cs-entry__tags"> 
 <ul> 
  <li>Alameda</li> 
  <li>Bankman-Fried</li> 
  <li>bitcoin</li> 
  <li>btc</li> 
  <li>Caroline Ellison</li> 
  <li>ceo</li> 
  <li>SBF</li> 
  <li>Trading</li> 
 </ul> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sbf-s-alameda-triggered-bitcoin-s-87-crash-tbt63497.html">https://thebittimes.com/sbf-s-alameda-triggered-bitcoin-s-87-crash-tbt63497.html</a></p>

SBF's Alameda Triggered Bitcoin's 87% Crash

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