Observations:
One huge short (bitUSD) order was placed with relatively low interest rate (but not 0% interest); 5 min later a bitUSD buyer bought
close to 50% of that order worth of bitUSD.
Theory...
-I3 bought themselves about 370,000 BitUSD (in a single transaction, probably more total including some smaller ones);
Why?
- BM has stated that he does his accounting in USD (bitUSD) and is going to pay everybody in bitUSD; so having USDs is not an issue or opinion on the price movement of BTSX;
- Why 370K? This is pretty close to the total amount of all grandfathered shorts ,in my estimate, (so their existence is no longer an issue for the good market peg behavior).
-Why yesterday? Combination of several beneficial conditions - the new versions fixes (supposedly) the wrong yield calculations for the shorts; possibility to short at low interest rate, that the market presented;
Now if the above is all true the observations and questions that remain for me are:
It seems that the increase in the supply of bitUSD happened mainly during the last price drop of BTSX... Why those people still remain in bitUSD? I have several theories (aside from the most obvious one) but none of them is anywhere provable or too interesting.
@Svk - I believe you link is to the opening of a short order not to the execution of one.