[TrainedMonkey]

Couple things they could do:

1. Rejecting the orders that will wipe out the order book.

2. Doing something hedge-fundy. Becoming counterparty or running the darkpool that let's other people jump on that.

3. Do nothing - there is now an incredible amount of limit orders from people kicking themselves for not doing something like that earlier (I've got a few:P).

[runeks]

> 1. Rejecting the orders that will wipe out the order book.

So, allow speculators to place as many bets as they want and prevent people who want out from getting out? Let everyone in, and when they become over-leveraged, prevent them from escaping? Rejecting sell orders (which can cause these things, if they're large enough) is not an exchange, but some form of casino.