So as you describe it a stop loss is a dumb algorithm, that sells if the price drops below a threshold. My view is that in free market this type of activity is predictable, and therefore explotiatble. This means the fix should be market driven, i.e. investors have a feeling for the 'true worth' of ether so set up stop loss traps at low values to buy up any panics sells and buy cheap and prop up the price. Competetion between this type of investor should push up the trap level.
RE: Ethereum Flash Crash - $317 to $0.1 on GDAX - Programmer explains
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Ethereum Flash Crash - $317 to $0.1 on GDAX - Programmer explains