Everything you posted there is just your own speculation about the possible cause of the buying to 7, there is nothing wrong with speculation, but don't present it as fact. it may well have just been normal trading driving to 7, you should expect the largest orders appearing when people try to predict a top or bottom. and that those larger than normal orders will rattle the market.
That's why I laced my post with words like "appears" and "think". Nothing was stated as fact
In all we have Bitcointalk compromised and a plea from the admins for people to change their passwords. Soon afterwards there are massive price movements on MtGox without any positive news to explain the sudden 50% price rise and unprecedented pricing activity that followed. MtGox cancels some trades and posts an official message about compromised bitcointalk accounts and for people to be careful with their passwords. Many people use the same passwords across many sites.
Now, one could put all the above together and decide someone just decided to go on a bitcoin buying binge because they really wanted to own a lot of bitcoins very quickly. I pull out a rather different conclusion.
I already read that mtgox support stuff, he did not say the main buying to 7 was due to compromised accounts, and I never thought it was. It looked like 4's could be a bottom at that time. my tiny buy wouldn't have moved it beyond 4's so I wouldn't be as exposed as the big players who bumped it to 7 as I could just change my mind if it came back down
MtGox never literally said "compromised accounts caused the buying binge to $7", but the available evidence points in that direction. Is it conclusive? No. But it's the most plausible explanation.
From MtGox:
"Subsequently, some of the information have been used to conduct unauthorized orders, resulting in unusually high trade activities."
MtGox did cancel some $7 range trades but they know they can't cancel all the subsequent trades generated due to the price movements. Once people saw the irrational trading activity on MtGox (hey, instant 50% price rise!) they piled in and sold bitcoins into the rally. The compromised accounts did not have unlimited bitcoins or funds for the hackers to play with. The rally petered out and now we're stuggling to maintain $5.40. Bitcoin will retreat to $5 soon enough.