sorry totally can't catch your logic
the key is a bitCNY holder can buy any volume at the same price.
imagine bitCNY can peg at rate 1:1 now
1. somebody collect 200K bitCNY first
2. ask for settlement
3. after about 22 hours, before the settlement be executed, he sell 200K CNY at BTC38, maniuplate the price down
4. waitting the settlement execute
if exchange like BTC38 do this, it's more easy.
shorters will found, they always be sold at a low price
it's not because they are unlucky, it's because the stupid rule.
this will loop again and again, until all bitCNY short position be settlement and no more stupid shorter continue the game.
1.I disagree that it is stupid rule; the propose of force settlement is to make bitcny:cny >=1,
2. the settlement execute in 22 hours as you said, eg. the current price is 2.5 cny/bts , you settle force use bitcny at 2.5bitcny/bts, but if the price in btc38.com decrease to 2 cny in 22 hours.
2.5 bitcny/bts is the low price ? I think the settlement is "buy any volume at the same price in periods of 22 hours
in btc38.com , we cannot buy any volume at the same price. and settlement of bitcny execute in 22 hours , it is similar.
same as clayop said
I think it's difficult to be happened. The manipulator should take risks that other market participants do not allow decreasing BTS price or etc.
but ,if there is no force settlement ,
1. use 1000W bts borrow a lot of bitcny,
2. change bitcny to cny if there are someone want to change ,
3.use cny buy BTS, make BTS price increase ,
4.use the BTS borrow bitcny , and repeat the process
just need to use the cny borrow to buy bts make bts price increase . they can repeat this process unceasingly. if the price is not down to call price
compare with two methods , what is needed and difficulty levels
force settlement without force settlement
Control price yes yes (easy, there are cny from borrow)
Need bitcny yes no
Need BTS no yes
Need CNY yes no
I think if there is on force-settlement , it would make more problem.
so I think it is better to keep force settlement, but change rule as follow
settlement price is the price in 24 hours (settlement execute ) ,
3. after about 22 hours, before the settlement be executed, he sell 200K CNY at BTC38, maniuplate the price down
I think you said "sell 200KCNY at BTC38" mean use 200K CNY buy BTS at BTC38? , if so ! shorters will found, they always be sold at a fit price?