Author Topic: A huge amount of shorts were expired. What will happen?  (Read 12701 times)

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Offline xeroc

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an expiring short results in a FORCED cover? I thought exporation is different from margin calls?!?

Offline pc

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It looks like this is a BUG!

Expired shorts are not matched against unlimited short orders. Selling BitUSD slightly below peg will get matched though.

There's a known bug that unlimited shorts aren't considered when a short with a higher interest rate and a limit less than 0.9 of the feed price exists. https://github.com/BitShares/bitshares/issues/1315

"Short orders are forced to cover after 30 days by taking the best offers at the time. No fee is charged.

Forced covers happen at the feed price or 10% below it.
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Offline Gentso1

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I thought when shorts expired, they were forced to buy bitUSD?

"Short orders are forced to cover after 30 days by taking the best offers at the time. No fee is charged."http://wiki.bitshares.org/index.php/BitShares/Short
« Last Edit: February 07, 2015, 03:20:49 pm by Gentso1 »

Offline graffenwalder

This brings up another question. Let's say DACX and a couple of other platforms, need a couple of million in bitassets. Will there be enough people willing to short, to provide them with what they need?

Offline sudo

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Offline Markus

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If they're buy orders at the feed, why they do not buy all the short orders that sell at the price feed?

It looks like this is a BUG!

Expired shorts are not matched against unlimited short orders. Selling BitUSD slightly below peg will get matched though.

Looks like about 3/4 of all BitUSD shorts are expired now. If BTS halves again before they get bought up the Black Swan flies in.

Offline liondani

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I would suggest for BM to sell/short to them some bitUSD...after all he is the strongest proponent of the idea that it is a good business practice to lend money and pay interest for the privilege to lend them funds... :-*


0.02 BTS



#200% collateral from shorts, as black-bird counter measures...

your suggestion make sense...
we could make some experiments on DevShares before we made them here... (and I am not talking for your suggestion )

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zerosum

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I would suggest for BM to sell/short to them some bitUSD...after all he is the strongest proponent of the idea that it is a good business practice to lend money and pay interest for the privilege to lend them funds... :-*


0.02 BTS



#200% collateral from shorts, as black-bird counter measures...

Offline vlight

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If they're buy orders at the feed, why they do not buy all the short orders that sell at the price feed?
« Last Edit: February 06, 2015, 11:11:17 pm by vlight »

Offline Rune

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I think they will just stay on the orderbook as bitUSD buy orders at the feed. It could probably take a while until they are gone.

Offline clayop

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Hundreds of thousand BitUSD shorts were expired just before and they are remaining expired now.
In this case, what happens next?
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