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Main => General Discussion => Topic started by: starspirit on December 05, 2014, 12:02:02 am

Title: BitUSD supply spike on Nov 26
Post by: starspirit on December 05, 2014, 12:02:02 am
I only just noted from bitsharesblocks.com that on November 26 the supply for bitUSD appeared to jump significantly from around 1m units to over 1.6m units, and then since has dropped below 1m units again. Anyone know what drove this?

Title: Re: BitUSD supply spike on Nov 26
Post by: biophil on December 05, 2014, 01:24:24 am
I only just noted from bitsharesblocks.com that on November 26 the supply for bitUSD appeared to jump significantly from around 1m units to over 1.6m units, and then since has dropped below 1m units again. Anyone know what drove this?

It was probably the owner of that huge margin order buying up enough bitUSD to cover, thus spiking the supply way up, and then covering his order, thus dropping the supply back down.

This is just me guessing; I haven't actually looked into it at all.

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Title: Re: BitUSD supply spike on Nov 26
Post by: CLains on December 05, 2014, 01:31:47 am
Yup, a great sale from a great whale :D
Title: Re: BitUSD supply spike on Nov 26
Post by: Markus on December 05, 2014, 06:45:41 am
There was a single margin order of roughly 700k BitUSD about one day from expiry.
Title: Re: BitUSD supply spike on Nov 26
Post by: starspirit on December 05, 2014, 10:17:22 am
There was a single margin order of roughly 700k BitUSD about one day from expiry.
Thanks Markus. By this do you mean a margin call on shorts? Or something else?
I thought if a short is being covered, then it is a reduction in supply unless it is covered into new short positions, in which case the supply is unchanged. So I'm still not sure why there was a jump in supply.
Title: Re: BitUSD supply spike on Nov 26
Post by: biophil on December 05, 2014, 03:31:05 pm
There was a single margin order of roughly 700k BitUSD about one day from expiry.
Thanks Markus. By this do you mean a margin call on shorts? Or something else?
I thought if a short is being covered, then it is a reduction in supply unless it is covered into new short positions, in which case the supply is unchanged. So I'm still not sure why there was a jump in supply.

The spike happened because of what I said earlier: the owner of the short covered it manually by buying 700k bitUSD, increasing the supply, then covering his month-old short, reducing the supply. It was probably not a margin call.

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