The problem here is not the outwitting - but rather the manipulation: If I _know_ that a news item about a major law suite against a company will bring dow

The problem here is not the outwitting - but rather the manipulation: If I _know_ that a news item about a major law suite against a company will bring down it stock (predict behavior of others) - trading is valid. If I create a false news item in an attempt to bring down the stock - jail. They didn't analyze current affairs to guess how the trading algorithm will respond, rather they used it to manipulate the stock price.