Sometimes the orderbook price may significantly deviate from the index price, this is normal and happens in all exchanges.
But in Kraken (the exchange), they deviate the mark price so little from the index price that the following scenario happens:
Today, VOXELUSDT had an index price of 0.66, a mark price of 0.65 in Kraken, and an order book price around 0.5 (order book price similar as in other exchanges)
So, in kraken if you sell this at 0.5, kraken will immediately unwind (force you to buy back because your counterparty "got liquidated") your position at the 0.65 mark price, for an instant huge loss.
The person getting liquidated (probably a market maker playing the system, or kraken itself) actually makes a huge profit, which is the opposite of what the system is supposed to achieve.
Indeed, if you were to instead buy VOXELUSDT at 0.5 and withdraw your collateral to get liquidated at the mark price you would make a huge profit (assuming you hedge your position at a different exchange)
This happened multiple times today in VOXELUSDT, constant liquidations for profit.
Kraken: pls fix the abuse by letting the mark price deviate more like binance does, and if it's not you profiting from the abuse you should warn or ban the abusers
