A former employee of Alameda Research has revealed that the now-defunct quantitative trading firm was responsible for a rapid 87% plunge in Bitcoin prices in 2021. The incident occurred on October 21, when the world’s biggest and oldest cryptocurrency sunk to as low as $8,200 on Binance.US for no apparent reason.
BTC’s Crash On Binance.US In 2021 Explained
An ex-Alameda employee has shed light on what really caused Bitcoin’s unprecedented flash crash in 2021.
According to former Alameda Research engineer Aditya Baradwajan, a trader at the firm accidentally entered a Bitcoin sell order on Alameda’s manual trading system with the decimal point off by a few spaces, selling a block of BTC for pennies on the dollar at the time.
PART 2: THE FAT-FINGER or The story of how a misplaced decimal point at Alameda Research caused a market crash that echoed around the world. (1/n)