I didn't say the system to buy BTS. I said "by buying all the open sell BTS orders".
with specific example so I can understand:
A short order for $100k bit usd is about to expire and we decide not to cover in advance.
There are at the feed price sell bitusd $50k (which are bought automatically)
There are $20k open short position not auctioned (which are now auctioned automatically)
There are $30k buy bitusd @ $1 per BTS (are these bought as well and the expired cover position is closed?)
I obviously did not mean $1 per BTS, that would be some bizzare price fixing. It is $1 per bitUSD. And again the last group is BUY BITUSD orders which are SELL BTS orders, so why would the market engine BUY BTS if it needs bitUSD?
Maybe what you meant was:
* Margin for $100k expires
* At or below feed price there are sell bitUSD $50k. These are bought up.
* $20k unfilled short bitUSD orders are also bought up.
* $30k sell bitUSD at slightly above $1 per bitUSD. These are not bought up, instead there is a $30k buy wall from the market engine at the feed price.
(the discussion in question is whether to allow the market engine to buy up bitUSD even at more than $1 per bitUSD, meaning those last $30k would get bought, since its better to cover now and sqeeze some shorts than to risk waiting and having the market move too far)