Ethereum flash crash

On Wednesday Ethereum (ETH) took a massive hit dropping from $360 down to $260 before bouncing back - but what actually happened is that because there was massive sell off of Ether in short period (approximately $30 million), the buy orders got wiped out alway down to $224 resulting in a slippage in the order book of approximately 29%. Due to this slippage in the order book about 700-800 stop/loss orders and liquidation margins were being traded as low as $0.10-$0.20. Frankly, that is insane.

Some would argue that it is plain and simple free market economics, but I guess my question is, should there be some kind of safe guard put in place so these things are "controlled" in the algorithms behind the scenes so that if a big sell happens there isn't such a chain reaction with all the stop/losses in GDAX being executed. In reality, one person clearly benefited by withdrawing such a large about from the market, but what about all the small guys ? A lot of people lost a lot of money because of this.

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The Dajboz

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