An official post has been published on GDAX’s blog, stating “our initial investigations show no indication of wrongdoing or account takeovers. We understand this event can be frustrating for our customers. Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk.
Tradebook uncertainty is a very skewed distribution at the exchange.
We have a matching engine vs some bot or human a few seconds to a few minutes away. In a fair traded system, each trading bot should see the same uncertainty, which is certainly more like 5%, not 30%. Hence, bot trading on margin would have acquired the liquidity or cancelled the debt before the trade executed.
All auto trading, only. Otherwise the reaction times are over the map, you leave huge hedges during high volatility. At the least, why didn't the trade bots have [rice bounds on their bid or ask? Something is not though out here.
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