You mean flash crash and then immediately back to +$200? Or you are saying that those who sold at 160btc will be queing up to buy like crazy at $123.40 (Gox last price)?
Why would anyone queue to buy at $123.40 when they can buy at $88 right now on another exchange?
No they CANNOT. Explain to me how I can buy 10,000 USD of bitcoin RIGHT NOW on any other exchange? You would have to have an account open with them AND have USD sitting in that account.