– a sudden and precipitous drop in the value of a cryptocurrency, where the price action represents a dramatic decrease from the current price in an uncharacteristically short period of time, then suddenly returns to a price at or near the price achieved prior to the event. Usually as a result of a large sell order, then fueled by the closing of margin orders due to margin calls, combined with the execution of stop loss orders.
The chart above displays what is known as the GDAX flash crash, where price action on the GDAX exchange (now Coinbase Pro) sent the value of ETH temporarily to near $0.00 before the price recovered moments later.
The exchange did not have an automated kill switch to temporarily halt trading for instances like this.
The guy you know who needs to get up 5 times a night....
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