What happens in a flash crash

[mdj]

Your post inspired me to write a blog post in reply:

http://bytemaster.bitshares.org/article/2015/01/27/BitAssets-and-Black-Swan-Events/

Thanks for writing this up! I'm glad automated settlement is getting integrated though I hope it's not something that has to be triggered!

[BunkerChainLabs-DataSecurityNode]

Your post inspired me to write a blog post in reply:

http://bytemaster.bitshares.org/article/2015/01/27/BitAssets-and-Black-Swan-Events/

"In short, pun intended, the price feeds alone are unable to harm shorts or longs and all market participants can predict with a high degree of confidence how to value BitUSD in any and all market conditions."

Har Har on the pun..   

[bytemaster]

Your post inspired me to write a blog post in reply:

http://bytemaster.bitshares.org/article/2015/01/27/BitAssets-and-Black-Swan-Events/

[mdj]

With collateral for all BitAssets being Bitshares at 3x, what happens if BTS suddenly loses a large amount of value in a short period? Would the blockchain issued assets become negative with nobody wanting to buy due to them basically being debt? At what scale would the price need to fall and in what period for an event like this become extremely damaging? Is it a recoverable scenario?