Subject
2 entries
Market Manipulation
Bookmarks
They Still Haven't Told You: Overnight vs. Intraday Market Anomaly
Bruce Knuteson documents a decades-long anomaly in global stock markets where overnight returns consistently exceed intraday returns in ways consistent only with a large quant firm systematically expanding its book at open and contracting at close. A forensic finance argument that major market manipulation has gone unreported by the institutions supposed to catch it.
Crypto Wash Trading
A finance paper by Cong, Li, Tang, and Yang that introduces systematic statistical tests for detecting wash trading on unregulated cryptocurrency exchanges, finding over 70% of reported volume is fake. The methodology — Benford's Law, size rounding patterns, tail distributions — is reusable forensic infrastructure for any manipulated market.