Jane Street employs a strategy: accumulating assets, then sharply crashing the price and profiting from shorts.
Using a similar algorithm at 10:00 AM New York time (5:00 PM Moscow time), they operated in the Indian market and earned $4.23 billion, after which the Securities and Exchange Board of India (SEBI) temporarily imposed restrictions. Currently, the company has $560 million frozen in an escrow account, and the investigation is ongoing.
The scheme is simple: 1. Have billions of dollars from investors
2. Buy spot Bitcoin, for example, at $68 000
3. Open large shorts through options and derivatives
4. Within minutes, sell large volumes of BTC using algorithms in low liquidity conditions or amid negative news to provoke panic
5. The price drops to $62 000
6. Close shorts with huge profits, losing only about 5% on the spot
7. Rebuy Bitcoin at $62 000, trigger a short squeeze, and fuel FOMO
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⚠️This is SHOCK urgent reading
Jane Street employs a strategy: accumulating assets, then sharply crashing the price and profiting from shorts.
Using a similar algorithm at 10:00 AM New York time (5:00 PM Moscow time), they operated in the Indian market and earned $4.23 billion, after which the Securities and Exchange Board of India (SEBI) temporarily imposed restrictions. Currently, the company has $560 million frozen in an escrow account, and the investigation is ongoing.
The scheme is simple:
1. Have billions of dollars from investors
2. Buy spot Bitcoin, for example, at $68 000
3. Open large shorts through options and derivatives
4. Within minutes, sell large volumes of BTC using algorithms in low liquidity conditions or amid negative news to provoke panic
5. The price drops to $62 000
6. Close shorts with huge profits, losing only about 5% on the spot
7. Rebuy Bitcoin at $62 000, trigger a short squeeze, and fuel FOMO
8. And open large shorts again…
And so on in a cycle 🍸
#btc