Recently, this OKX big holder rights protection video has been overwhelming, 517 BTC were locked after being liquidated, who wouldn't feel anxious after watching it?
In the video, the lady shows her account balance: after being forcibly liquidated, the remaining 517.something BTC has become an amount that cannot be withdrawn or moved. Although OKX claims it is compliant risk control, it once again proves the hard flaw of CEX: without the private key, the life and death of assets depend entirely on the platform's mood.
Seeing some say that the parties involved are engaging in long-short hedging, I am not a party involved, and I do not know the specific situation. However, after rationally analyzing this matter, I feel free to be refuted if I am wrong; I am eager to learn.
1. Regardless of the truth of long-short hedging, does this behavior have any problems? Don't the current market makers have many who are engaged in long-short hedging and arbitrage across platforms? Why haven't I seen them being targeted?
What exactly is the problem with long-short hedging?? Are there rules I don't know about?? I hope the experts can give me a lesson.
@Yi He @CZ 2. What is the reason for the forced liquidation of contract positions and the freezing of spot accounts? Even if it is long-short hedging, market operations, etc., why does the power of judgment lie with the exchange? Market manipulation is legally defined as a crime; shouldn't adjudication be a matter for the courts and legal systems? Is it now the exchange acting as the judge?? Then, by this analogy, can Coinbase now freeze all the assets held in its ETF?
This is why I have chosen decentralized exchanges now:
Absolute ownership of assets: Assets are locked in a smart contract, only your private key can move them, and no one can unilaterally freeze you.
Transparent clearing logic: Refusing black box operations, every transaction and forced liquidation is clear on the L1 public chain.
With CEX's depth, there is also DeFi's bottom line.
The reason is simple; I do not want to place my hope on human nature, including the fact that all centralized exchanges essentially face this problem? When exchanges face similar controversies, can they act as judges??
Welcome to class, welcome to guidance.
#Sovereignty #OKX #BTC #eth