In less than one hour bitcoin traders on cryptocurrency exchange Bitmex saw 50 million dollars being liquidated. Longs lost their money when the price dropped to $9350, while shorts were victimized when the price surged back up to $9600. This all happened in a matter of minutes, as discussed by U-Today. The flash crash put more eyes on Bitmex.
The flash crash is something that happens occasionally, but on Bitmex - which is an unregulated cryptocurrency exchange based on the Seychelles - users have the ability to trade with high-leverage. This flash crash caused people to lose ridiculous amounts of money within a very short time frame, and because bears and bulls lost lots of money, only the house seems to be the winner here.
It's being suggested that Bitmex has been manipulating the market. On top of that the exchange is being investigated for accepting American traders to be active on their platform. If the CFTC finds the exchange guilty, it could lead to a customer block, a big fine and perhaps even imprisonment.
Bitmex has been around since 2014, and is one of the longest standing cryptocurrency exchange on the market. That's why many traders still trade on Bitmex, as it has a reputation. Bitcoin is currently one of the most traded currencies on the exchange, which has a daily trading volume of approximately 2.4 billion dollars.
