However it would Appear that BitFinex
is willing to go to any means necessary to "Protect Lenders",
But the other side of the coin is that just as Traders know the assume risk
when taking a position we assume that Lenders also take the same risk.
It is debatable whether Bitfinex are favoring the lenders over the traders. The connection to Bitstamp's api was down during the flash crash to 100, so the lenders would argue that the flash crash to 100 should never have happened (therefore the lenders are not liable to losses). The liquidation crash would have been far more orderly had the liquidated trades been made on Bitstamp with a price floor of no less than 450 judging by Bitstamp's bid depth at the time.