09.08.2025 19:46

A significant price surge of 100% in the GMX cryptocurrency was triggered by a trader's time-weighted average price (TWAP) order executed on the Binance spot market. This rapid price increase occurred within a very short timeframe. The speed of the trade execution proved to be a key factor in the dramatic price fluctuation.

The editor's note accompanying the news highlighted the risks associated with the trader's strategy. It recommended a slower execution speed for future TWAP orders, suggesting the incorporation of a size and time randomizer to mitigate detection by market makers. Market makers, anticipating the large order, likely preemptively removed liquidity, thus exacerbating the price impact and increasing the trader's slippage costs. This highlights the challenges inherent in executing large orders quickly on volatile markets.

The incident serves as a cautionary tale for traders employing TWAP strategies, underscoring the importance of careful order execution planning. Using techniques to disguise order size and duration is crucial to minimizing market impact and achieving optimal trade execution. The information came from internet sources.