IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v63y2024i4d10.1007_s10614-023-10378-3.html
   My bibliography  Save this article

Does Short-and-Distort Scheme Really Exist? A Bitcoin Futures Audit Scheme through BIRCH & BPNN Approach

Author

Listed:
  • Dun Li

    (Shanghai Maritime University)

  • Dezhi Han

    (Shanghai Maritime University)

  • Zibin Zheng

    (Sun Yat-sen University)

  • Tien-Hsiung Weng

    (Providence University)

  • Kuan-Ching Li

    (Providence University)

  • Ming Li

    (Shanghai Maritime University)

  • Shaokang Cai

    (Shanghai Maritime University)

Abstract

Short and Distort (S &D) is a price manipulation scheme in the futures trading market. In recent years, S &D has become increasingly rampant due to the emergence of Bitcoin futures. While existing research has just begun to notice this phenomenon, this article presents the first detailed empirical study, where we examine the information available on S &D, synthesize it with cryptocurrencies, then propose a problematic definition and discriminatory criteria for S &D in Bitcoin futures. Besides, we provide a typical S &D case study, where we build a model to implement real-time detection of S &D in perpetual and term contracts, exhibiting higher accuracy and robustness compared to other related studies. Results show significant S &D manipulation in both perpetual and term contracts that the proposed model can effectively detect. Furthermore, the Binance exchange is relatively secure among selected exchanges, and the Bittrex exchange is the most likely to suffer from S &D.

Suggested Citation

  • Dun Li & Dezhi Han & Zibin Zheng & Tien-Hsiung Weng & Kuan-Ching Li & Ming Li & Shaokang Cai, 2024. "Does Short-and-Distort Scheme Really Exist? A Bitcoin Futures Audit Scheme through BIRCH & BPNN Approach," Computational Economics, Springer;Society for Computational Economics, vol. 63(4), pages 1649-1671, April.
    • Handle: RePEc:kap:compec:v:63:y:2024:i:4:d:10.1007_s10614-023-10378-3
    DOI: 10.1007/s10614-023-10378-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-023-10378-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10614-023-10378-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:63:y:2024:i:4:d:10.1007_s10614-023-10378-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.