What market correlation were we betting?

The flaw allows trading firms with sophisticated algorithms to move the VIX up or down by simply posting quotes on S&P options and without needing to physically engage in any trading or deploying any capital. This market manipulation has led to multiple billions in profits effectively taken away from institutional and retail investors and cashed in by unethical electronic option market makers.

Evidently traders have been manipulating VIX.  VIX is the variance in the forward price options over the market.  But there is no natural correlation between Apple and GM. There is no reason they would have the same bettable futures, except they are both government regulated by the SEC.  

So we have a bunch of VIX bettors trying to discern future common regulations and future common safe rates.  Pretty stupid since those issue are already bet.  So the natural tendency for VIX betting should be betting random noise. The whole VIX market is another creation of the Magic Walrus crowd in the Swamp.