The implication is that Bitfinex being the largest exchange and offering traders the option to lever up in an illiquid market causes excessive volatility.
Don't bother reading the article. Only one sentence in the entire article was about margin trading and Bitcoin and here it is:
Bitfinexs current leverage is about 3.3 to 1 for buying Bitcoin/Litecoin on margin, which is very miniscule compared to the leverage in more established markets.
I m more worried about Higher leverage (Like futures trading - 10/20x leverage), where sometimes with just few coins, traders can move the price up/down by few $. It make it much easier for "Big players" to manipulate the price and drive it in any direction they want.
True mate..even I am a bit worried about the "big Players" but I guess there is mostly someone to counter it..so it doesnt move much..unless few big guns sync it together.