Quote from: roadbits on August 02, 2015, 01:25:54 AM

a bot that was a small percentage of MtGox's volume, could really single-handedly incite an entire bubble when there were at least 2 or 3 other similarly sized exchanges?

There were and still are MULTIPLE bots on the exchanges til this day...

on bitstamp/bitfinex you'll see 50 btc blocks of bid orders being added and removed every few seconds blinking in and out of price ranges ...

sidenote: review the links about mtgox trade forensic analysis of it ...

Also at the time bitstamp and btce were playing "catch up" to mtgox's higher pricing ... which is why they had a higher percentage of the "market volume" because of manipulation and pooling of users ...

additional note: when you see one price on exchange A at $300 and on exchange B at $270 ... of course you would want to buy the bitcoins at EXCHANGE B for $270 and sell it higher at EXCHANGE A for $300 so that's how prices are influenced at different exchanges ...

Additional side note: It's called an arbitrage equilibrium... where when supply on one route is listed at a lesser price and the demand on another route has a higher listed price meaning those prices have to meet at some point "catching up" to the appropriate levels...

ALSO to roadbits since you had asked the question of "how it could really single-handedly... incite a bubble at '2-3' other similarly sized exchanges" ... well now you know and since you failed to understand that prior you must be one of those that are unacknowledged of actual financial assets =/

please take that time to actually learn about the validity of an asset etc..