Well played BitMex. Great way to liquidate all long and shorts in just 5 minutes.
On Jan 31st, there was a flash crash on BitMex which caused short positions worth $10Mn to get liquidated. However what comes next is incredibly surprising. Within 5 mins another flash crash happens but this time in the opposite direction causing nearly $20mn worth of long positions to get liquidated.
The main issue here is that BitMex calculates it's Bitcoin index on the basis of the last weighted prices from 3-5 top cryptocurrency exchanges, every 5 seconds. However, how it seems that within 5 mins such an index can swing so much that it causes both longs and shorts to get liquidated is beyond me.
If this isin't manipulation then I don't know what is.