How an erroneous tweet helped hacker make millions?

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An false tweet from a hacker, who entered into the Associated Press Twitter account reporting of explosions at the White House could have caused investors to lose money and the hacker to make millions.

Stocks nosedived following a false AP tweet that reported that the White House had witnessed an explosion and that President Obama had been injured. The AP confirmed its Twitter account was hacked and the spokesman said the tweet was "bogus."

The hacker could possible have shorted before posting the erroneous tweet and after the fall could have covered his positions. It took several minutes to notify that the news was false. Investors who sold on the news could have lost millions, as there was a swift gains on the Dow after reports denying the news.

After the erroneous tweet the Dow Jones plunged 144 points and later ended the day gaining 150 points.

Read more about: twitter
Story first published: Wednesday, April 24, 2013, 11:32 [IST]
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