💡 Bitcoin's 87% Plunge on Binance US in 2021 Caused by Alameda Employee's Fat Fingers
On October 21, 2021, Bitcoin plummeted from $65,000 to $8,200 on the Binance US exchange. Usually, such cases are associated with some kind of failure in the software, but, as it turned out, not this time.
One of Alameda's traders, instead of using algorithms as was usually done, decided to manually send a BTC sell order and set the wrong price. As a result, he sold a huge amount of BTC, the price collapsed, the arbitrageurs quickly returned the quote to the previous values, and Alameda lost millions.
