So what? Bitcoin has a fantastic potential to make people ton of money. Lots of smart and well connected people are in it.
If this guy makes money through manipulation, he will certainly be in good company in Bitcoinland. If he suckers people into naked or fractional games, shame on them. Unlike PM's there is no reason at all not to 'take delivery'.
Blythe herself has been one of my dearest unknown friends when I was building a position in physical PM's. It was simply dumb-luck timing that I happened to be wishing to build when she was especially active in depressing the PM prices (so the theory goes anyway.) If she and her type are active when I wish to draw down I'm sure I'll feel differently about it.
If Mr. Masters manages to manipulate the markets, it is most likely that he'll take them up since there is only $650-ish on the down side that he'd be able to achieve. So he can knock himself out if he's a big enough man to pull it off. I'll wager that he's going to have serious competition in his sphere of brinksmanship.