So let me get this straight...
Go long --> crash down due to domino effect of longs closing --> saved by roll back of trades
Go short --> crash down due to domino effect of longs closing --> lose by roll back of trades (not able to close position at a profit)
Go long --> crash up due to domino effect of shorts closing --> lose by roll back of trades? Will you roll back trades in this instance?
Go short --> crash up due to domino effect of shorts closing --> saved by roll back of trades? Will you roll back trades in this instance?
So we are paying you for a service that if I wanted to profit during a crash, would be impossible?
You say you roll back trades due to lenders losing money, but I've asked multiple times how can lenders loose if positions are forced closed before the possibility of lenders loosing, with no answer.
Who cares if the price goes to zero, some people get cheap coins, lenders don't lose a thing, and the next trade after zero can be any number, possibly only a penny less than before the domino effect began.
I lost money last night because ___________?
If you can give me a legit answer to my last question, which defies everything said in this entire post, then I will give up. If not, give me my profit I should have earned. Pretty simple deal if you ask me.
I think the answer is that you will be able to profit from a crash, but not from a flash crash, and you will be able to profit from a bull run, but not an flash short squeeze.
People seem to be making a "lenders versus traders" story out of this, but let's not forget that for every trader that was short or who had really low buy orders, there is another trader who was leveraged long with a liquidation price at $200 or something like that. These longs are screwed too by flashcrashes.
I honestly think that if there were the type of crash in which the lenders would lose like 10% of their capital, bitfinex would uphold this. But last night would have wiped out nearly everybody. I believe almost every liquidity provider remaining (and future ones) would have packed their bags, left, and never return. The End for margin trading.
So really, again, I think we need to come up with a transparent plan on how these types of flash crashes will be handled in the future, because they WILL happen again.