lunaduring the collapse of short position Do you think investors who open up are rich? Unfortunately, making money from leveraged transactions in this market is more difficult than you think.
According to the news of Seoul Economics, the Korean cryptocurrency company During the Uprise Luna collapse, the client lost 99% of their funds.
During the collapse of the company Luna LUNAIt was a matter of curiosity how he managed to do this by short selling .
While investors were surprised to lose money by taking a short position while the price of something fell, they once again understood how difficult this market is.
The Korean firm used an AI-enabled automated trading application to manage client funds. This practice was supposed to minimize the risk in leveraged trading, but unfortunately it didn’t work out as expected.
The BOT, which shorted in the wrong places during the collapse of LUNA, coincided with price spikes many times. BOT, which closed positions by constantly making losses in this way, caused 99% of customer funds to melt.
How could money be lost by shorting LUNA, whose price was reset, while nearly $20 million of funds were liquidated in this process? the question arose.
While Uprise announced that it will take initiatives to recoup some of the client funds, it confirmed that the funds were damaged.