here is a post

If you watch the 0.02s, and there are many of them, they are coming from HFTs (High Frequency Traders) pushing the price up, up, up and they sell sell sell, using the 0.02s to drive the price to lows and then buy, buy, buy.
Watch the activity with the 0.02 orders. You can see it happening.

I suppose the exchanges could limit the number of trades allowed per second/minute. But the HFTs might go elsewhere... causing the problem on other exchanges. Does MtGox lose money if that happens, or would it restore confidence to its users.

Or should we look into becoming HFTs ourselves and ignore the bright future bitcoin could have as a currency and trash it like a used toy for some greedy profit taking today.

Just wondering.

hmmmmm keeping an eye on mine now

posted

I think its too early to say what exactly has happened. This will surely send some people into other exchanges, which is probably what is needed.