I posted yesterday that I have a paper coming out that proves not only BTC-C, but all major exchanges are engaged in creating a completely fictitious market. I have contacted the exchanges I have investigated for comment prior to publishing.
All major chinese exchanges, or all major exchanges period? Which exchanges did you investigate? Do you have any info that you can share with us now?
The paper focusses on BTC-C and MtGox with data covering one month. The main manipulation is the use of false trades to move the market, there are also what I'm calling the run_up and run_down bots which work in conjunction with real trading action to move the price in whatever direction is desired by the exchange.