Madrid release one piece of information that an agreement has been reached with Malaga and that they are offering a five year contract, that information is acted upon by the Spanish press, the thousands of media outlets feed on that information and rehash the same information with spin, the Twitter ITKs in turn feast on the information and add more spin and release further information that the deal is done in Madrids favour, this information feeds the press further. The spanish punters pile money on the good odds that were available at the bookies who in turn slash their odds allowing citys odd to lengthen. In turn british punters who are a bit more savy see that the odds have gone out in favour who in turn put more cash on at the bookies who in turn shorten Citys odds, the British press jounralists who have no information start to realise that the deal hasn't actually been done and in turn release information to say deal not done, the press pick up on this and then the paers run stories it isn't done, this in turn feeds the media outlets who re hash those stories and these feed the ITKs on Twitter who do an about turn and start to say he might join City. IMO that is why one day we get good news followed by a day of bad news. Of course transfer forums can't cope and the posters go from deep joy he is coming to our club one day to flapping the next because we all feed off the same information. Does this help, does it ring bells.
The bit that they are all missing however is the intention of the player to sign. It is still 50/50