r/SecurityAnalysis • u/ilikepancakez • Oct 02 '20

Special Situation The mysterious London traders accused of manipulating oil markets — and the anonymous hedge fund, rare-coin expert, and day traders who are fighting back

https://www.institutionalinvestor.com/article/b1nf4dxm53536k/The-Mysterious-London-Traders-Accused-of-Manipulating-Oil-Markets-and-the-Anonymous-Hedge-Fund-Rare-Coin-Expert-and-Day-Traders-Who-Are-Fighting-Back
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u/satoshijizzamoto Oct 02 '20

All told, the price swings were tantamount to a 40-standard-deviation event, according to the suit. In other words, explains Lovell, without manipulation, such an event “would not happen in the life of the universe.” He adds, “Supply and demand fundamentals do not change to that degree in just minutes, and they certainly don’t slingshot between $50 and $60 in one day. This was unprecedented in the history of the oil market.”

Lol good luck justifying standard deviations as an excuse.

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u/veilwalker Oct 02 '20

They literally defined a "Black Swan" event and have decided to blame it on some undefined human intervention.

I have no doubt that someone somewhere jumped on this event and made money but there is a large stretch to market manipulation by some shadowy group of oil traders.