Someone swapped what had been $131,350 in USDR for $0 in USDC
Someone appears to have swapped what had been worth around $131,350 in USDR earlier in the day for $0 in USDC, with the possible "fat finger" trade occurring as the stablecoin known as Real USD depegged on Wednesday.
On Thursday, an X user noticed that someone on OceanSwap, a DEX and DeFi aggregator, swapped the 131,350 wUSDR tokens for less than $0.0001 in USDC. What's more, the user paid 0.0012 BNB ($0.25) in gas fees.
The possible “fat finger” trade occurred as USDR depegged, losing almost 50% of its value on Oct. 11.
FAT FINGER TRADE!!
A fat finger trade is a term used to describe a trading error that occurs when a trader makes an unintentional mistake when entering a trade order. This error is typically caused by pressing the wrong keys or entering incorrect values, often due to human error or a typing mistake.
Fat finger trades can result in significant financial losses or market disruptions, especially when large quantities of securities or derivatives are involved. For example, a trader might intend to enter an order to buy 100 shares of a stock, but accidentally enters an order to buy 10,000 shares instead. This can lead to an imbalance in supply and demand and cause sudden price movements.
In some cases, fat finger trades can be quickly identified and cancelled or corrected before any significant impact occurs. However, if the trade is executed and the error is not rectified promptly, it can cause disruptions in the market and potentially result in financial losses for the trader or their firm.
To prevent fat finger trades, trading platforms often have built-in safeguards and confirmation mechanisms to help traders review and verify their orders before they are executed. Additionally, trading firms may have risk management measures in place to monitor and detect potential errors or unusual trading activity.