An Italian bank that provided $180 million in credit protection on a CDO called “Pyxis” alleges in a complaint filed on April 6 that the U.S. hedge fund Magnetar and others conspired to secretly place risky assets into Pyxis so that Magnetar could bet against the CDO and profit from its collapse.   According to a Pulitzer-winning article by ProPublica in April 2010, this practice was widespread and known in the industry as “The Magnetar Trade.” In June 2011, JP Morgan paid $153.6 million to settle SEC allegations that it helped Magnetar with a “Magnetar Trade.” Goldman Sachs paid $550 million in July 2010 to settle similar allegations relating to a different hedge fund. The case is before Judge Sweet.