It is an attempt to game the system in that it represents an attempt to use meta-game information to manipulate the playing field - to make it more level to all players.
How is the free market not level? If someone wants to protect against price volatility in a longer time frame, they hedge against it. As a general concept, if I have 100 shares of company X and I dont want to lose money on the share value, then I short 100 shares of company X...duh.
The payment processors are not going to help you out here...another fact of who is really a community member rather than a quick buck con artist. If you really wanted to help out, we have to figure out something that moves against bitcoin. I know one of the exchanges was going to put in short-selling, but I never heard anything past that.
You sound well-informed and thoroughly educated on the topic. Let's begin.
The free market isn't level because more than 80% of the wealth in the market is silent. That's a massive (chaotic) unknown waiting to go off.
No hedges against BitCoin currently exist that adequately cover the volatile spread of BitCoin's potential losses as an investment.
Short-selling is a speculative strategy and does nothing for the net value of BtCoin as a currency.
Payment processors are just as likely to be honest or dishonest as the entities they do business with.
There is no indicator as to whether or not payment processors would help with this idea - none of them have weighed in on it.
Nothing moves against BitCoin, it is too volatile - nearly random, in fact.
CampBX was discussing short-selling and margin trading, but to my knowledge those haven't materialized yet.
Now you know at least this much.