According to former forex trader and cryptocurrency analyst Cole Garner, low orders in the range of $13 to $60 were actually filled on the platform. Garner published screenshots of GDAX that showed successfully filed orders at $55 and $65.
As of December 7, the price of Ethereum (ETH) remains at $85 and at the lowest point of the day, ETH dropped to $83. At $55 and $65, Garner was able to purchase ETH at a rate that is 36 percent lower than the current price of ETH.
What Caused the Flash Crash?
Most flash crashes occur due to mistyped or misfiled trading orders at low prices. On exchanges, investors can easily make a mistake in entering a wrong figure for a buy or a sell order.
For instance, a potential Ethereum buyer may have wanted to file a buy order at $13 to purchase the digital asset at the lowest support level possible, but engaged in a careless mistake and filed a sell order at $13 instead.
It is entirely possible that one individual trader intended to file a buy order at $13 seeing a strong support level in the range of $13 to $14, as several technical analysts have suggested throughout the past week, and mistakenly filed a sell order at the low level.
Even on major stock markets like the New York Stock Exchange (NYSE) and Nasdaq, flash crashes occur quite regularly and because algorithms and bot trading dominate most markets, technical glitches cannot be avoided.
As Investopedia explained:
“As securities trading has become a more heavily computerized industry driven by complicated algorithms across global networks,