As per the ex-forex traded and cryptoanalyst, Cole Garner, low orders in the ballpark of 13-60 USD were virtually filled on the trading network. Garner revealed screen grabs of GDAX, which displayed successfully submitted orders at 55 and 65 USD. As of today, the ETH value is still at 85 USD, with the daily low at 83 USD so far. At 55 and 65 USD, Garner managed to buy the ETH currency at a 36% lower rate than the actual price of the asset at the moment.
The majority of flash crashes happen because of the mistyped or wrongly submitted trading orders at low prices. On cryptoexchanges, financiers can carelessly make a mistake by putting in a wrong figure for a purchase or sell order.
For example, a possible ETH purchaser might have desired to submit a purchase order at 13 USD to buy the cryptocurrency at the lowest support level there is, but made an easy mistake and submitted a sell order at 13 USD instead.
It is completely plausible that someone wanted to submit a purchase order at 13 USD with a strong support level in the area of 13-14 dollars, as previously proposed by some of the technical analysts over the past seven days, and by mistake submitted a sell order at such a low level.
Such flash crashes tend to happen even on dominant stock markets, such as the NYSE or Nasdaq. Due to the fact that algorithms and automated trading are prevailing in the majority of the markets, technical glitches are a commonplace.
It remains unknown if Coinbase is going to compensate cryptotraders who lost out on the occurred flash crash. However, in the event that the firm established that the flash crash was caused by a mistake on customer’s part, there is a high possibility that no compensations will be made.