Do you have any idea the effect this will be having on the volatility of Bitcoin?
Very little. Daily trading volume averages around 20k on slow days, peaking at well over 300k on busy days. Dumping gox coins all in one day wouldn't be all that unusual of a trading day. The liquidator is not going to place a 200k market order on some random exchange. They will be liquidated in an orderly manner. The effect on the market will be minimal, and temporary.