[catnipman]

“This is, of course, completely different than a bank loaning out ten times the amount of actual cash it has in its vaults... “

Well, it IS actually completely different if two (or more) people claim actual ownership of the same dollar (or bitcoin).

[nitzy]

This is the first I have heard of this.

Do you mean that someone hacked Mt Gox database and moved Bitcoin from someone else's account to their own? Or do you mean that someone actually compromised the blockchain and fooled the entire network into believing that they owned Bitcoin that were not actually theirs?

There is a huge difference between these two things.