BitMex has upset their customers with recent outages, and it’s unclear if their excuse has made it any better.
As gateways to the world of cryptocurrencies, centralized exchanges have amassed large amounts of influence over the years. These companies control the power to make or break blockchain projects, and are usually the only businesses that remain profitable regardless of the volatility that the crypto market experiences. All of this wealth and influence has led to serious unethical acts of market manipulation and exploitation that expose exactly why decentralized exchanges are needed now more than ever.
The current market seems to be largely driven not by organic buying and selling, but by exchange driven manipulation of the spot market to exploit the current dynamics of leverage trading. Since the exchanges know the characteristics of the outstanding shorts/longs, and since volume is low after these pumps or dumps leading to sideways drift, they can essentially engineer movements in price that create income in terms of liquidations. When there are lots of overleveraged shorts, an exchange can pump the price with bots briefly and collect the short position. Same with longs but in reverse, a quick burst of selling pressure.