Someone put in a market sell order for 500,000 $AVAX this morning, $16mm worth, all at once. The open question is, was this a "bear raid," where someone opens a leveraged short position and then dumps to profit, or was it a "fat finger"?
Having spent 10 minutes looking around, the math behind a bear raid doesnt' actually work out. Running a trade of shorting on futures and dumping on spot would not have been profitable given $AVAX's liquidity on spot and futures.
So, the evidence points to a "fat finger," where someone put in an extra zero by mistake.
There was a similar event on FTX last week involving BTC where an analyst needed to sell 20 Btc for his firm but sold 2000 at market instead. He then tried to buy it back in one big buy order of 2000 BTC and market ran up the price on him. Firm lost $55mm.
So, Mr. Fat AVAX Finger out there, hope all is OK.
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