Lawsuit? ... No need - insider trading is handled by "Agencija za trg vrednostnih papirjev" which is the Slovenian version of the Securities Commission. All I'd need to do is write a letter to them with some publically available data showing them what happenned...I'm sure they'd be able to handle the rest themselves, computer logs are easy for them to get and analyse.

But I'm not going to do it, I didn't loose enough money this time to bother with this (although other people might).
And I'm sorry if I sounded abrupt/rude in my posts, I was just pissed off at them, not at you.

...read again... they are talking about BTC-E not Bitstamp in that forum

Nope...read the anouncement - they've got a fix and it will be tested and implemented soon.
Definitely insider trading by some individuals at Bitstamp - it went on well before they posted the anouncement.

...looks like they did know just before the announcement... the owners of those large Bitstamp bids are guilty  of inside trading!!!

Does anyone know why in the last hour or so while Gox price is getting slaughtered, massive bids pop up on  Bitstamp and keep pushing the price up at the same time.

Is someone illegally trading at Bitstamp or GOx based on some inside information?

Edit: ...Or is there some new type of anti-arbitrage going on...?

hahaha goxBTC to BTC exchange ... 10 out of 10 for entertainment value - love the idea joshbb!
.....

But the real reason I'm posting here is this - imagine this hypothetical scenario:

1) someone buys goxBTC for real BTC
2) the seller of goxBTC is later found by MtGox to have cheated them by exploiting the current technical bug (withdrew BTC from Gox but then was reimbursed by Gox for what they thought was a "failed" transaction) and then sold the reimbursed goxBTC to an unsuspecting buyer for real BTC.
3) Gox go through all the customer account balances and delete the non-existent goxBTC from all accounts as part of their current fix

Possible? - Yes!
Probable? - Yes!

Does the buyer loose their acquired fraudulent goxBTC? - possibly!!!