they worried about can't buy back these USD at normal price.
nobody dare to short new BITUSDwhy not?
now the feed price is 0.009 USD/BTS, but the buy1 price is only 0.0084 USD/BTS,and the volume is only 5.6 USD.
maybe you need to buy BITUSD at price 1.05 USD/BITUSD these days.
As far as I can tell, there is no mechanism to prevent the expensiveness of bitUSD on the BitShares exchange from persisting indefinitely. This is due to the asymmetry between longs and shorts in the functioning of BitAssets - shorts are forced to expire and cover, but longs never are. This creates uncertainty on the short side, and reduces overall liquidity. In theory it would be possible at least for a holder of bitUSD to sell on the internal exchange, and switch their BTS back for bitUSD on an external exchange. That was previously difficult enough given high spreads, but now with the lack of a viable external exchange (BTER), this problem is further exacerbated, and we are reliant on where bitUSD holders decide the premium is sufficient to incentivise their sale.
I've recently suggested more symmetric systems between longs and shorts that might allow stronger pegging and 2-way arbitrage. These are alternatives to BitAssets, not simple changes. Maybe they're infeasible ideas (pending replies), I'm just seeing an issue and helping to try resolve it.
Somebody on this forum told me that expired shorts are prevented from paying more than some fixed premium over the feed price (10%?), though I've only seen it mentioned once. Is that true, or was I misadvised? If not, I suggest shorts need to be cautious in the absence of a viable and liquid external exchange.