I could completely wrong, it is likely that I am, but I think that there are a large number of automated traders on both Bitstamp and BTC-e. Some while ago these bot-users determined that the Chinese markets could/would serve as nice triggers for the other exchanges. ++ for a long while it was Gox that served up similar triggers ++
In our increasingly nervous market the bots detect a movement on, say, Houbi and automatically follow suit. That combination is enough for human traders to climb on the bandwagon and reinforce the initial move. Then the more rational/reasoned traders counter-move and the initial trajectory is reversed.
I believe that these oscillations will continue until: 1. There is no 'other market' that serves up a trigger; or, 2. Confidence is regained, the nervous market ends, and a true vector forms.
$0.02
Or another possibility: market makers selling BTC short.In our increasingly nervous market the bots detect a movement on, say, Houbi and automatically follow suit. That combination is enough for human traders to climb on the bandwagon and reinforce the initial move. Then the more rational/reasoned traders counter-move and the initial trajectory is reversed.
I believe that these oscillations will continue until: 1. There is no 'other market' that serves up a trigger; or, 2. Confidence is regained, the nervous market ends, and a true vector forms.
$0.02
I didn't mention whether they were going long or short. Just that the bots seemed to be following Huobi on the initial movement.
edit: this latest move appears to have started on Stamp.
I understand you agree with this sentence 
As most of us perhaps will.
