Why a shorter short?
obviously because he judge that something is overvalued.
in BTS term shorter refer to the users who judge that fiat is overvalued, on the contrary, BTS is undervalued, so they short BitAssets, they hope when the BTS price rise up they can sell their BTS to get BitAssets back to cover the short position, and then make profits.
shorters bear the risk of being margin called.
so the basic logic for shorters is that he can hold his collateral when the collateral ratio is sufficient and wait for the price change.
now you make the force settlement, which means anyone can get the collateral from the shorters at the feed price, no matter how high his collateral ratio is.
isn't it robbery? when BTS price is low, speculators can get BTS by force settlement as they will, they can even supress the BTS price in external exchange to lower the feed price to make them even better conditon to rob BTS from shorters.
trade logic should be, you can ask to buy, but I can refuse to sell, even the leverage contract only get settled in some special conditons, now you enable any one can force settle any time. why be so cruel to shorters?
you said force settlement is not new, it comes out for long time. anyway, in 1.0 there is no such force settlement, but many shorters's positions are inherited from 1.0, shouldn't you be more cautious when it's possible to hurt a group of users?
now let's check what force settlement will bring to the market.
in BitUSD market the BTS price is always lower than feed price, we can forsee that seldom force settlement will happen.
in BitCNY market as now force settlement is well known, BitCNY will be priced more expensive than CNY, suppose 1.05 CNY, transwiser paused the deposit business, and no one will use BitCNY to deposit to BTC38.
for pegged asset it's important to peg well, just get a price floor will make no sense, if 1 BitCNY always worth 1.05 CNY, no merchant would like to use it, they won't list 2 different prices for one single goods, one for CNY, the other differnent for BitCNY. and if the merchant just regard BitCNY as same as CNY, who want to pay in BitCNY?
force settlement will bring chaos to the well organized BitCNY ecosystem, and do good only to speculators.
let me repeat my suggestion: please make force settlement an asset-specific feature, and committee can decide to which asset the feature will apply, then for example we can enable this feature for BitUSD and disable it for BitCNY, by doing so we can also compare the behavior of these 2 MPAs to analyse what force settlement bring to the market and decide further.