Well, like any market, this would appear to be vulnerable to manipulation by a deep pocket, especially if shorts are present. In this case though, the risk is finite since the max value is 1.00 so maybe just your normal whipsaw manipulation would be present.
The 'Rat faction subsequently sold the Bush contract heavily, all the way down to 23 bid at one point, iirc. This cannot have been simply bad trading judgment; the volume was too heavy (to quote Mr. Casey Stengel, ''Ya could look it up.'').
Well, any time there's THAT much of an underlay, one simply has to take a piece of it, and I did (no credit to me; I was planning on laying it off at even money at a local pub, turned out I didn't have to (shrug)).