When a margin call is triggered, the collateral will be used to buy any of the asset that's available for sale cheaper than [feed price * maximum short squeeze ratio] to cover the position.
I think max squeeze short is 10% (from 50% it was) so it is more possible that on a thin market like now it will not find on the open market all the bitAsset needed to close the position... In that case will the system wait like on bts1 until the price feed is in a range of 10% from the price feed and find the remaining asset's? What happens if the price never comes back to the price range it can collect the remaining assets?
I definitely think 10% must increase soon so the market will define the "fair" prices and the exchange will not be so much feed depended... less vulnerable to feed manipulation... can we find the sweet spot?
can the system automatically increase the squeeze protection spread when for example the 24h volume is high and decrease it when the volume is very low?Make it sense?