One of the reasons for the drop last week is sizeable MTGoxBTC holders selling for MTGoxUSD in order to position themselves to sue.
How does holding USD vs BTC at mtgox make any difference to one's legal standing? Has a lawyer anywhere explained how that makes sense?
There's only one reasonable explanation for why MtGox users were selling at ridiculously low prices (relative to Bitstamp), especially knowing that it would be even more difficult to withdraw fiat than BTC: because they were hoping to buy back cheaper. Disabling withdrawals essentially set up a control experiment, and the result was a textbook demonstration of how "endogenous dynamics" drive a market until it reaches the extremum, and reverses.
