In some sense yes, although at there size there were other issues related to market impact by other groups in that trade ect. Also, if they could hold down those positions (from a capital perspective) they would have been right eventually.
There are so many arbs now, and willing to take .0000001 cent profit, that I'd suggest looking at an anti-arb trade for opportunity. When you make your first million, let me know.
Keep in mind that all the work to trade (hence remove) these arbs does improve market quality. It's certainly a good thing that people are willing to take down such small margins
Out of curiosity... Other than on CME (FX futures), where are they doing textbook triangular arb that quickly (necessitating tick to wire of single digit micros)? I mean...of course they're able to, but since the spot fx world is drastically slower than futures/equities, where are they able to really capitalize on the speed advantage? Even some of the venues which had been conducive for faster players (ebs), have been implementing mechanisms to level the playing field as it related to speed.
The forex folks have convinced themselves that being short and long an identical position is "arbitrage", probably what mr. ForexGrowth is thinking of.
"Forex brokers hate this one weird trick!" If I didn't have a conscience I'd be selling snake oil in the retail forex sector.