Recently have heard of this conspiracy and been reading into it. I would like to share what I have found so far and hopefully this community can clear up any misunderstandings or different conclusions to draw from the information.
A private/secret investor group has been using an insider way of margin trading. It is believed that Tether USD, a coin that is claimed to be backed 1:1 with US dollars is being created by this group, but without having actually been minted from submitting a US dollar. Bitfinex and Tether have a strong relationship and both have had questionable and spotty histories with banks, finances, and transparency. It is believed that they have hidden behind those shortfalls to amass a large wealth from fraudulent sales of tether and are putting this money on margin pumping up prices of Bitcoin and other crypto currencies. Eventually this group will take profits on the fraudulent positions, short the markets, and then this fraudulent faucet of free money will stop and be exposed leading to a large drop and more profits for the secret group.
Some links to articles where I got a bit of my information to grasp this understanding of the conspiracy that has been circulating.
https://www.reddit.com/r/Bitcoincash/comments/7f39m0/the_operation_dragonslayer_conspiracy/
So what are the communities opinions? Do I have some misunderstandings? Any more details about some of these aspects of the theory? Or should none of us be worried about any of these red flags.