General Discussion

Insiders get the information well in-advance to load up or sell gradually over a few days or hours to not raise attention.

Then, big hedge firms, institutional investors, and nations run AI bots that scan news releases, and trigger preset buys/sells seconds before the news release can be read and reported by financial press.

The sudden move traps more passive traders --shorts or longs-- and causes them to have to liquidate to mitigate losses, which makes the whole market cascade. But not enough to trigger market halts. By that time, the insiders are already frontrunning the reversal.

Day traders watch for those advance clues and know there will be two quick moves ahead - when the news hits the general public, and when the TACO happens. They're building their own bots to trade these moves. It's like an arms race.