We have already assured you the full compensation.
So that means no forced liquidations.
The team has not confirmed the settlement price yet. But you can expect these arguments:
- I have unrealized profits and I should have them!
- I have unrealized loss and I should wait until I recover!
We have open interest of 100,000 BTC so the conflict of interest is huge. I will leave this for the team to decide but my general suggestion is to use the highest price as the settlement price for longs and lowest price as the settlement price for shorts. You can continue to hedge your position elsewhere (and get some one-time settlement free money from Bitcoinica). It'll be fair for Bitcoinica and the user.