Could you elaborate on how Gox is operating like a fractional reserve bank?
I will admit that I don't know enough to properly articulate why MTGOX is operating under a Fractional Reserve type system. However, a great post by ZERODAY https://bitcointalksearch.org/topic/mtgox-makes-doublespend-transactions-for-btc-withdrawal-request-314901
proves that MTGOX is DOUBLE SPENDING and as a result when you withdraw your BTC's from MTGOX, you will get a confirmation that the BTC's were transferred, however when you check the block chain, no such transaction occurred. If this happens to you (MTGOX goxxes you and double spends, you'll receive your BTC's in about 24hrs if you're lucky or in some cases a few days).
So why is MTGOX double spending?
This is what ZERODAY found - kudos to him on his research.
Two days ago I was asked by my technically inexperienced friend to investigate lost Mtgox transaction which has never appeared in blockchain.
I found his transaction on https://data.mtgox.com/api/0/bitcoin_tx.php, then converted it from base64 into HEX and tried to broadcast it myself.
However, after attempting doing so, I was really confused to find that the transaction is double-spend.
A day later bitcoins were finally delivered to the target address but they were sent with different transaction.
Did anybody experience the same behavior of Mtgox transactions?
