Abstract
Recent market disruptions, such as the vanishing $212 million Bitcoin order reported by CoinDesk, have reignited concerns about spoofing and manipulation in crypto asset markets. This blog explores how the Ohanae platform—leveraging a hybrid Automated Market Maker (AMM) settlement model with cash-only settlement—fundamentally avoids these vulnerabilities. With a closed-loop system, atomic settlement, and no central order book, Ohanae ensures transparency, integrity, and resilience in the trading of tokenized securities.
How Ohanae's Hybrid AMM Settlement Model Prevents Market Manipulation
On April 29, 2025, CoinDesk published an article titled, "A Vanishing $212M Bitcoin Order Caused Chaos for Traders. Is Spoofing Back in Crypto?", highlighting a sudden and disruptive event in the cryptocurrency market. A massive buy order for $212 million worth of Bitcoin appeared, only to vanish moments later—triggering confusion and volatility across exchanges. This is a textbook case of spoofing, a market manipulation tactic where fake orders are used to deceive traders about demand or supply, then pulled before execution.
Events like this raise critical questions: Are decentralized markets fundamentally vulnerable to manipulation? And more importantly, can they be made safer?
Enter Ohanae, a platform for trading tokenized securities that takes a fundamentally different approach.
The Problem with Traditional Markets
Traditional crypto exchanges operate with centralized order books, where traders can place and cancel orders freely. While this offers liquidity, it also creates opportunities for bad actors to manipulate prices—spoofing being one of the most notorious tactics. The lack of real-time, on-chain settlement further exacerbates the issue, making enforcement and traceability difficult.
These dynamics can erode market confidence and disproportionately harm retail investors, who are often reacting to signals created by sophisticated traders with no intention of executing their orders.
Ohanae's Approach: A Spoof-Proof Settlement Architecture
Ohanae doesn't just tweak the existing model—it rethinks it from the ground up. Here's how its Hybrid AMM (Automated Market Maker) Settlement Model (Cash Only) protects traders and investors:
- No Central Order Book = No Spoofing
Ohanae removes the central order book entirely. Instead, it uses a hybrid AMM system, where prices are determined algorithmically based on available liquidity. Since there are no visible order queues to manipulate, spoofing simply isn’t possible. - Atomic Settlement in OUSD
Every trade on the Ohanae platform is settled atomically—meaning the exchange of securities and the equivalent cash (OUSD) occurs simultaneously. There are no delayed settlements or off-chain reconciliations, which prevents manipulation during the time gap.
OUSD is a covered stablecoin (April 4th, 2025 SEC Statement on Stablecoin) issued 1:1 with U.S. dollars, ensuring value stability while retaining the transparency of blockchain settlement. - Closed-Loop, Permissioned Blockchain
Ohanae operates on a permissioned blockchain, ensuring that only verified participants can engage in the ecosystem. This drastically reduces the likelihood of malicious actors infiltrating the market and engaging in manipulative tactics. - Principal Dealer Model for Stability
All trades are executed with Ohanae Securities (a wholly owned subsidiary of Ohanae, Inc.) acting as principal dealer, ensuring consistent liquidity and removing the dependency on external market makers who may have misaligned incentives.
Conclusion: Spoofing-Proof Markets Are Possible
The $212 million spoofing event in Bitcoin markets is a stark reminder of how much is at stake in the design of trading infrastructure. Ohanae's architectural decisions—cash-only settlement, atomic trades, a closed system, and no order book—create a trading environment where spoofing simply can’t happen.
By applying these principles to tokenized securities, Ohanae sets a new standard for fair, resilient, and transparent capital markets.
Disclaimer
Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and member of FINRA/SIPC. Additional information about Ohanae Securities LLC can be found on BrokerCheck. Ohanae Securities LLC is in discussions with FINRA about exploring the expansion of business lines for the broker/dealer. Any statements regarding abilities of Ohanae Securities LLC are subject to FINRA approval and there are no guarantees FINRA will approve the broker/dealer's expansion.
Ohanae Securities is seeking approval to be a special purpose broker-dealer that is performing the full set of broker-dealer functions with respect to crypto asset securities – including maintaining custody of these assets – in a manner that addresses the unique attributes of digital asset securities and minimizes risk to investors and other market participants. If approved, Ohanae Securities will limit its business to crypto asset securities to isolate risk and having policies and procedures to, among other things, assess a given crypto asset security's distributed ledger technology and protect the private keys necessary to transfer the crypto asset security.