I don't understand how people could have withdrawn bitcoins, used transaction malleability to make gox think there was an error and resend the coins... to the tune of 750,000 BTC without mtgox noticing something was wrong... am I missing something? or is the loss related to something else?
Crazy Rabbit's theory is that they never had the 700k in coins to start with. Gox may have been selling non-existent coins all along as the transactions were off blockchain.
Gox thought they were making money but actually due to malleability issue, they were getting continually drained of real bitcoins.
So the liability side to customers kept getting bigger and bigger and bigger.
I would say that Karpeles is a genius retard... IMHO of course.