According to Evgeny Gaevoy on Twitter, recent examples of AI-generated 'hallucinating slop' have drawn attention to the risks of relying on unverified AI outputs in trading decisions (source: @EvgenyGaevoy, May 14, 2025). For cryptocurrency traders, this underscores the importance of verifying AI-driven analysis before acting, as inaccurate data can introduce significant volatility and risk in crypto markets. Staying vigilant against AI misinformation is crucial for effective risk management and profitable trading.

According to Anthropic (@AnthropicAI), recent discoveries have identified circuits within AI systems that explain puzzling behaviors such as hallucinations. They found that the AI named Claude defaults to refusing to answer unless a 'known answer' feature is activated. This feature, when erroneously triggered, can lead to hallucinations. Understanding and addressing this could be crucial for traders who rely on AI for decision-making to ensure the reliability and accuracy of AI-generated insights.