That seems to be the implication of this posting by James Hamilton at Econobrowswer.
Aluminum prices and volatility may surge further over coming weeks as a fund with an already large exposure slowly tightens its grip via the options market.
Data have shown one player controlling more than 90 percent of available or on warrant stocks of aluminum-- about 600,000 tonnes worth about $1.6 billion-- in London Metal Exchange warehouses.
Analysts and traders think that player is a U.S. hedge fund, but would not name it. The large holding has made the market nervous and pushed up volatility.
... Commodity speculation will help the economy allocate resources more efficiently when speculators earn their profits by correctly anticipating movements in fundamentals. But if instead speculators buy high and sell low, they are creating problems for themselves and all the rest of us. The above reports suggest to me that we may have another case like the Amaranth Hedge Fund-- somebody foolishly thinking they can manipulate the market, and then getting so deeply into trouble that they keep doubling up the bet in hopes of bailing themselves out.