10k Bitcoin shorts close on Bitfinex, followed by "unscheduled maintenance"

11 Jul, 2019 | Updated: 11 Jul, 2019
by Will Heasman
Exchange
10k Bitcoin shorts close on Bitfinex, followed by unscheduled maintenance

Earlier today Bitcoin shorts on the popular cryptocurrency exchange Bitfinex plummeted in what appears to be a mass liquidation, this was swiftly followed by the dreaded “unscheduled maintenance,” which saw trading on the exchange halt as a result.

Approximately $117 million worth of Bitcoin shorts closed on Bitfinex today, falling from around 14,000 to 4,800 in a matter of minutes.

BTC/USD SHORTS chart provided by TradingView

Soon thereafter Bitfinex itself closed, with the exchange citing “unscheduled maintenance,”

This was followed by a flurry of updates, one of which noted that the unspecified issue had been resolved:

Trading went live shortly thereafter.

While the reason for the maintenance remains unknown, one thing is for certain, the liquidate shorts appeared to have little to no impact on the market whatsoever. Typically a close as massive as that would have some price increase as the position forces a market buy to settle the close, however, as witnessed back in June this isn’t always the case.

On June 29th Bitcoin shorts cascaded 67% on Bitfinex, making up around $220 million worth of Bitcoin shorts at that time. Similarly, the market remained unaffected, with a few speculators suggesting this was due to the investor claiming the short position with existing BTC, negating the need to market buy in order to close. It’s likely the same has occurred today. Either that or there’s something fishy going on over at Bitfinex…

What happened? Let us know what you think in the comments below!

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