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The price of ethereum [alternative to Bitcoin] crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange, which is being blamed on a "multimillion dollar market sell" order.
As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused ethereum to trade as low as 10 cents.
A stop loss order is executed automatically once a security hits a particular price. Margin funding is essentially trading with borrowed funds. Liquidation is when these positions are closed automatically in order to prevent further losses. The knock-on selling effect caused the flash crash on GDAX.
Whatever it is.... the basics is there.
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