Friday, October 17, 2008

Intrade market manipulation

An internal investigation by the popular online market Intrade has revealed that a single investor’s purchases prompted “unusual” price swings that significantly boosted the prediction that Sen. John McCain will become president.

Over the past several weeks, the investor has pushed hundreds of thousands of dollars into one of Intrade’s predictive markets for the presidential election, the company said, resulting in repeated monetary losses through a strategy that belies any financial motive.

Rumored for several weeks, and addressed by Nate Silver a week or so back.

h/t TPM

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