That theory doesn't make much sense, as if you buy back 500 bitcoin now it will take the price well beyond where he/she sold it for. I think its just someone who bought a lot in the 20's and now is taking profit. The 700btc dump took place at a similar level. Anyway, I'm hoping for some news on factom's birthday tomorrow....
They are selling a tremendous amount of coins to themselves on the way down.
It's pretty simple really. Well, it's more complicated than this, but this is the basics of it.
1. How many coins (X) to dump the price to (Y).
2. How many of those buy orders are mine.
3. Difference between price to dump to (Y) and how many of those coins are mine is how many coins you expect to lose by dumping (A).
4. How many coins will be sold via stop order or panic that you can gobble up (Z).
If Z > A dump away.
Thank you for taking your time to explain it. It sums it up well.
Someone with the capability to invest with large amounts of money should be capable of knowing that when they dump a large order on the market, it will cut in their profits as well. Selling a big chunk in one load will lower the entire price, which means you will also get less for the coins that you are selling. Therefor you sell it slowly in small chunks.
This wasn't the case, this person tried to cause panic and sold everything at once. This decision led to the seller missing out on a few thousand dollars, because if they slowly sold their coins, they would have received a higher price for their coins. But instead he had the chance to try and start a panic reaction on the market, which didn't seem to happen.
