New Dynamics in How Frauds Are Discovered and Markets Adjust


"The 18-hour reversal from post-earnings euphoria to negative market territory reflects machine intelligence processing financial statement footnotes, calculating deviation from industry norms, and executing trades before human analysts completed their models.

"This speed creates new dynamics in how frauds are discovered and markets adjust. 

"Historical frauds —Enron, WorldCom, Lucent —required months or years between initial warning signs and market recognition. Algorithmic detection compresses that timeline to hours.

"The implications extend beyond Nvidia. 

"Every public company now faces machine-speed scrutiny of accounting practices. Anomalies that might have persisted for quarters until human analysts identified patterns now trigger immediate algorithmic responses."


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