Im not trying to wine here or look for a scape goat for my loss but all bias aside I think this is still insane. It defies all utility this service has over low liquidity exchanges. With unpredictable spikes like this you cant trade on margin not long nor short. Im just sad I have to leave the site because I liked it but this is an impossible situation.
I know, it is shit to loose money like this. You would expect all the folks that are using Bitfinix to understand how to use limit orders instead of a market buy like this. But it is not like there are spikes like this every day. And the traders at Bitfinex always seem to be super bullish.
This extraordinary spike was enabled by the lack of BTC Bitfinex has bought on Bitstamp as far as I understand it, thats why this new notice over the ASKs appeared: "Not enough USD reserve on Bitstamp, you cannot buy on Bitstamp at the moment.", so all BUY orders have to fall back onto Bitfinex`s liquidity pool and thats just insufficient for the volumes traded as demonstrated by this spike. I dont understand why they didnt buy more BTC to ease the liquidity stress. Could someone pls explain to me how this thing happens in the first place? Are there limits on how much BTC Bitfinex is allowed to buy and transfer on Bitstamp at a time?
From what I understand, Bitfinex is not buying any BTC from Bitstamp, and is not transferring BTC to Bitstamp either. They are transferring USD, so that clients can go long with, via routing.