Each time Mt. Gox has a screwup, the trading depth on the buy side (which reflects real money entrusted to Mt. Gox) drops. They're now at twice the buy side depth of Tradehill. A week ago, they had six times the depth.
You have to remember that mt gox does not publish depth below a certain point below the price. Makes it hard to calculate total depth.
Exactly, a large move in either direction is going to clear out a ton of orders, leaving the DOM incredibly lopsided. In our case everyone who wanted to buy between 14 and 11.1ish were able to, so of course when price bounces from 11 back to 14, there have only been a handful of people who were able to put in new buy orders between 11 and 14, so the DOM is gonna look out of whack.