mFB liquidation (unexpected)

What happened to mFB, abnormal oracle price causing massive liquidation.

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I had the same thing happen to me around 5:30 pm EST today.
I looked at the mFB price chart on coinhall.org and it looks like it briefly hit $350 somehow. It’s still around $240 which is about a 20% premium

The price feed should be from the oracle price of FB, not mFB from coinhall.org. Apparently, there is a false oracle price feed.

Do you have a block number or example tx?

Block Number:
7327787

And here are a couple of my liquidation transactions:

Thanks for taking a look!

Apparently, there is a false oracle price of about $290 from normal $200 range, So all positions with the collateral ratio below around 220% would be mistakenly liquidated.

Without a proper resolution, it would be way too risky to mint any mAssets.

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oh wow that’s pretty crazy, where did you see that at?
And you’re absolutely right, I will have to start unwinding all of my short/borrowed positions because of this.

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This is strange. I pulled the price feeds for mFB from before/after the block you identified. I’m not seeing a bad oracle price. Not sure what would have caused this.


|Block|Time|Tx|mFB Price Feed|
|---|---|---|---|
|7327700|4/20/22 9:18 PM|5D56EAAF2668482B8DE7589E36B52A3D5548632B4DE5FBF4F2971890046F1202|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.3025]|
|7327724|4/20/22 9:21 PM|E656405752B51E926176B604D9C487E6B32B00872B78812CB59CBD90F7117B58|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.149999999]|
|7327732|4/20/22 9:22 PM|28092B7C737DC5D5D9095F571BEB22E92FD17D52AC4E8C88D4354F5CFC8A4E7B|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.23]|
|7327740|4/20/22 9:22 PM|B1A074529E18DE4380ED90BEB7C2BDD1035847F4AFF715C50C532259C58E9EEB|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.1675]|
|7327748|4/20/22 9:23 PM|BF96F3DF4BCA6E025D692E3022BB49E083C6C266F9A548D53F3C44ED10CC4097|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.1975]|
|7327756|4/20/22 9:24 PM|FDEC987BD56DDC558143A7B29830638B510D92EB1C775201A16CE50FA6C6884C|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.125]|
|7327764|4/20/22 9:25 PM|C434A23CC204B58B6CA14979A6E8032108FF1A81E6BF12DE4B09482E4E784243|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.079999999]|
|7327773|4/20/22 9:26 PM|0D9CA1C98803FB7C0BE719886B6F8BCCA5020F0835C3408CA550D20CD0A67C3B|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.12]|
|7327792|4/20/22 9:28 PM|29A2AC2DD3BEC94206D7525E45BB54009F015279B4150CF217B4F488A0C82D40|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.185]|
|7327807|4/20/22 9:30 PM|D4E1E8D6E1CFE4B817A5644AE53BBFB4FB3EDD9C231662B0BB4A904C82804D2F|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.204999999]|
|7327815|4/20/22 9:31 PM|23910A7DE30A40814D9876C9B84706AC60C302AF0360E1E90A2A3CA774B61357|[terra1mqsjugsugfprn3cvgxsrr8akkvdxv2pzc74us7,201.21]|

Thanks for the quick check. I indicated the block liquidation happened. Could it be possible for the bad feed happened in an earlier block?

It would need to be before, but the feed txs that I posted include the ~5 minutes before the liquidations started. I’m not sure what is going on here to cause this.

Oracle price here at $290.18 : Terrascope

You can find a similar post from me a few months back. I was really annoyed but still wanted to use the protocol. I didn’t’ see how I could use it with these liquidations. Since then I have studied how liquidations happen and build a system to ensure I do not get liquidated. Since I have put the system in place I have not been liquidated and run low collateral ratios. Basically I am able to get prices a few blocks ahead of the oracle and automatically trade my positions before the oracle can get its price. It has made around 50 or so trades for me in the past month. In addition, with the mKO craziness going on, I decided to start liquidating myself. It is very profitable on the mKO positions since they are at a discount. Once an asset is trading above 20% premium it is no longer profitable. You didn’t loose as much on mNLFX because it was already at a premium.

Liquidations are sort of ridiculous and debated if I should even post this. With $5k you can liquidate a $100k account because you just loop the collateral around for more liquidation.

I have an idea to fix the liquidation issue for every one. It if I am motivated enough it would take a couple of months to release a product.

I don’t really know now you can use mirror without some version of the tools I built. If you have a large amount invested and are interested in paid consulting let me know. You can take the tools I built and run them for yourself. I have put months of work into them and you would stop me from liquidating your account so I don’t expect to give it away.

Otherwise I recommend only shorting the assets above 20% premium. If someone liquidates you then they are doing you a favor. For fun I ran some positions under 150% so see if a liquidator would fall for it. They didn’t.

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Good catch. This isn’t the “price feeder” which I though the prices come through. So I guess the oracle price is updated thought something else as well/instead? This is definitely a problem/bug.

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I think the feeder you are looking at is no longer used. The price I send a link to a via the band protocol which is used via a few proxies.

Oracle update: [Features] New oracle integration + New admin manager contract by csanti · Pull Request #81 · Mirror-Protocol/mirror-contracts · GitHub

Band protocol info: GitHub - bandprotocol/cosmwasm-std-reference-doc

Here is the next price a few blocks later. back to 201. Very annoying. I think it was a real trade though. At least I see it reported else where. I don’t understand why a trade was that high though.

NASDAQ page for FB doesn’t show any abnormal prices…

Compare it to this screenshot from a previous incident like that (with PYPL), where the spike was shown on NASDAQ - Don't liquidate outside regular trading hours - #11 by FreddieChopin

Google spotted it:

It is also here https://www.nasdaq.com/market-activity/stocks/fb/after-hours-trades

Page 2:

Page 3:

Page 4:

A lot of trades with absurd prices on pages 2-4 in this timeframe.

I just opened a short position on mFB when the premium hit attractively high around 20%, and soon got liquidated by a single after-hour trade. …What a life.