"This appears to mean that the tech funds are losing money repeatedly to the benefit of the commercials but that the tech funds can't seem to figure out what is going on. If my interpretation is correct this would appear to be a case of outright insanity. What am I missing here?"

Just a guess: Mystical profit centers?...Paper money/electronic money....? Money laundering?...Invisible default swaps?...Extortion?...Black pools?...Guaranteed investment tips/frontrunning?...Counterfieting?...Guaranteed hedging advice?...whatever adds up to a win-win I should think.