An anonymous Intrade investor poured hundreds of thousands of dollars into McCain futures, inflating the market’s prediction that Sen. McCain would win the presidency, an internal Intrade investigation has revealed.
The unusual trades drove down Intrade’s odds of an Obama victory by as much as 10 percent “for more than a month,” CQ Politics reports.
Justin Wolfers blogged here about the squirrelly movement in the McCain market when it was first noticed earlier this month.
The trades were totally legal under Intrade rules. Will market manipulation for political candidates become the norm as ever-wealthier campaigns try to control the news cycle?