Jiang Zhuoer, founder of Litecoin mining pool operator B.TOP, said on Aug. 22 that a small flash crash hit the broader market at around 13:10 Beijing time. According to his post, BTC, ETH and several altcoins saw sharp wick-like price moves, while non-crypto assets such as crude oil also experienced brief and violent swings at the same time. Jiang used the move to warn traders about the risks tied to cross-margin setups in unified accounts.
He said traders should avoid holding large high-leverage long positions in multiple altcoins under a single account structure. In a joint margin or cross-margin mode, a sudden 50% drop in one token can leave the account under-margined and trigger liquidations across other positions held in the same account. That kind of chain reaction, he argued, can quickly spread losses beyond the original trade.
For traders who still choose to use high leverage on altcoins, Jiang recommended isolated margin instead. Separating positions can keep an extreme move in one asset from affecting the rest of the account. He added that isolated margin may be less convenient operationally, but it reduces the risk of having the entire account wiped out in a sudden market shock.
BlockBeats reported on Aug. 22 that Jiang Zhuoer, founder of B.TOP, said in a post that the broader market saw a small flash crash at around 13:10 Beijing time.
He said BTC, ETH and a range of altcoins all showed pronounced wick-like moves during the episode. Crude oil and other non-crypto assets also saw brief and sharp volatility at the same time.
Jiang warned traders against using a unified account to hold large high-leverage long positions in multiple altcoins. Under a joint margin setup, he said, a sudden 50% plunge in one token could leave the account short of margin and trigger forced liquidations in other assets in the same account.
For high-leverage altcoin trading, he recommended isolated margin so positions remain separated from one another. That structure, he said, can stop an extreme move in a single token from spilling over to the whole account. Jiang added that isolated margin is more cumbersome to manage, but in an extreme move, 「only one position blows up」, reducing the risk of the entire account being wiped out instantly.
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