[mrleiter]

This is really a curious instance. Those people whose savings have been wiped out have been hit so hard because they had stop orders, not limit orders. The main difference is that once the stop point has been reached, a stop order becomes a market order and then is filled at market rate. So yes, a stop order at, e.g., 300$ turns into a market order for 300$ and it may be that you are filled at 1$ if there is huge market movement downwards.

Moral of the story: even if you do not grasp basic financial instruments, in cryptocurrency you can still be saved because of reputation.

[justinjlynn]

This is the basic definition of moral hazard. If the exchange had reason to believe a trader didn't even know the basic characteristics of the orders they were placing what business have they engaging with them at all?

[shizzlest]

one has to wonder why the exchange gives away their own money. trying to make the speculators feel that everything is fine and dandy in crypto gambling land ?

[Blackthorn]

There are also people who were hit because they got margin called. The process here seems a bit ridiculous and the compensation completely understandable. If Interactive Brokers gives me a margin call, I have a couple days to cough up the funds. They don't immediately liquidate my account.

[joosters]

Are you claiming that exchanges in cryptocurrency have a good reputation? They get 'hacked' on a regular basis and lose customer money so frequently that it's barely new any more. What on earth do they have to do to get a bad reputation in your eyes?