well undoubtedly someone played a coordinated action on many markets. holding down bitcoin till okcoin settlement (in order to screw all the longs positioned in the weekly futures), then dumping litecoin (causing the crash) while squeezing bitcoin just after the settlement (in order to screw all the shorts on the mid and quarter futures contract). Notice that 12 hours before okcoin settlement, more hype was generated in the alt market via a squeeze on nmc and ppc listed on btc-e.

This clearly demonstrates (or just confirms, because I can give more proof this has happened so many times in the past) that also the bitcoin price is totally manipulated by a bunch of guys. In the short term (1/2 weeks) they can fix and print whatever price they want! Whatever! They do it mostly by manipulating at the same time the price on okcoin (both spot and futures) and bitfinex which are the most liquid exchanges.

Now back to the ponzi scheme. It'll be interesting to know much more about it. If only some chinese guys could help in here with the translations and more material from chinese websites. Seems there are none or just a few.

To be honest in the recent past I had a similar idea to that of our guy, but instead of involving a ponzi scheme with depositors looking for high yields, I needed high risk profile investors and a big company with a large client base and marketing power both looking for a very risky but highly rewarding project involving litecoin or another alt within the top 10-15 ranked per market cap. So even though the chances here are 90% for a ponzi scheme whose days are already ended, there might be a slight chance that beyond that scheme lies a larger project aimed to a wider litecoin adoption in China. I guess we will find out soon.