I just like to point out that it is the responsibility of the margin traders to know and own the risks of margin trading, including the limitations of BFX trading engine. If the market crashes and their positions are liquidated, they will just need to accept it.
Regarding the BTC liquidity issue at Bitstamp, I think that it is not acceptable. Yes, it is challenging to estimate the number of BTC kept at Bitstamp. But does it mean that everytime there is a crash, BFX needs to halt trading?
What I really am interested to know is: If a crash of this scale happens again, should we expect BFX to halt trading? No doubt the answer will affect our trading strategy.
Could someone explain to me - as if to a child please - In which situation Bfx require to be pulling btc back off of bitstamp? Thats the bit i'm not understanding yet, sorry. What was happening here, which specific scenario? Is it as simple as sells executed on stamp? Anything else? Why do we care about btc moving back, doesnt it all get accounted for eventually?
As if to a (not too young) child. Ok, young adult maybe