Because the market rules suck for shorts. I lost near 25% of my BTS because of it.
Unless you lost specifically because of the bug, I dont think you lost due to the market rules.
The reason people lost BTS is because:
* Short bitUSD means being MARGIN LONG BTS.
* If you are MARGIN LONG anything, and that thing just goes down and down and down, you lose a huge chunk of it eventually when you get margin called. Depending on your leverage, and how much it goes down, and the margin call, its quite possible to lose absolutely everything.
Many people here just do not have experience with margin. If you just buy and hold something (like buy and hold BTS), it is okay to just never sell and hold no matter how much it goes down.
But if you are on margin you CANNOT do that. You must have a stop loss and sell to cut your losses at soem point, or you will get margin called any lose it all.
Thats what happened in BTS. People who have never been on margin before shorted bitUSD because they were bulish on BTS. But instead BTS went down a lot, and they lost a huge amount of BTS. So they think "this is bullshit", and they get mad, and they sell all their remaining BTS.
The problem is that shorting bitUSD was something that was really for professional traders to do, not for average BTS holders. And yet a bunch of us normal BTS holders shorted bitUSD and got burned by margin. (I didnt. I got burned by margin in other things years back and will never use it again, so I have never shorted bitUSD).
Anyways, I think that there are a lot of people out there who lost because of their margin position going against them, and are now blaming BTS. Its not BTS' fault that thats how margin works. If you bet on margin on are wrong, you have to lose your BTS, because your BTS is going to the people who own bitUSD, because that bitUSD is worth more BTS now. Thats how it works.
Yeah, we all should have bought BitUSD instead of shorting them, how silly are we. Wait...
It's not that difficult to understand that you increase your exposition to BTS, you don't need to be a professional trader to understand that.
But here is what do sucks :
- you cannot cover with the collateral
- when you partially cover, you don't get the covered collateral. Obviously you should make numerous little short orders, but that's only obvious afterwards.
- the 10% rule after 30 days. Combined with the fact that nobody wants to short new bitAssets, this creates a sell pressure at 9.99% above the feed price when cove time happens
Today, supporting BTS means shorting some bitAssets so that people like me, who believed in all the vision and bull threads and kept shorting, could exit their short positions and get some rest, forget about al that shit, hodl those BTS and come back in a month with a smile without having to watch coinmarketcap.