Who in their right mind in transferring fiat to Gox now?
Unfortunately, many novice bitcoin owners will choose to sell their BTC at MtGOX because (a) it seems to offer the best price, by far; and (b) it is still cited in the news, blogs, and chart sites as one of the main exchanges.
read more carefully. Many would-be arbitragers have sent bitcoin to gox, but nobody would send or is sending USD or fiat to Gox. All it takes is
ONE arbitrager to drain the entire
fiat account totals left on Gox by selling bitcoin there, transferring the fiat to another exchange, buying bitcoin on the other exchange at lower prices, transferring the bitcoin back to Gox to sell at higher prices, rinse and repeat. Everyone including me is buying bitcoin at whatever price we can get to transfer to another exchange and sell there to cut our losses.
What? You're saying someone would market order dump BTC at that outrageous price and get stuck with Mtgox fiat. If that was going to happen, it would have happened long ago. That doesn't make any sense. You can't transfer Mtgox fiat to another exchange easily. Mtgox has no problem getting fiat. It has BTC which they can sell.