Alex Tabarrok writes that “-someone was manipulating Intrade to boost John McCain’-s stock price”-.
John Delaney said that that firm has been hedging on InTrade —-a normal and beneficial activity on the other (larger and more liquid) financial markets.
InTrade is not liquid enough to weather (quickly enough) the impact made by the hedging activities, at this time, but will in the future, if growth continues.
Manipulation is bad.
Hedging is good.