For those of you who don't read Bloomberg magazine (which you should), here is a great lengthy piece on Jim Simmons. http://www.bloomberg.com/news/marketsmag/mm_0108_story1.html
Think more like RenTec running algos that decrypt iceberg orders in dark pools..etc..etc Like beating the house when the house dont know you are there...
I've heard it called volatility pumping before. But it was always in reference to Cover's universal portfolio - never in terms of creating volatility to knock out others positions and to facilitate new positions for the fund.