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And last September, in the first cases of their kind, Amazon filed arbitration demands against several authors, publishers and marketers, alleging abuse of the KDP system to artificially inflate royalties and rankings. Back then Amazon’s demands included one against a man who allegedly offered authors a service to boost the number of pages read by using hundreds of fake Amazon customer accounts.

Andy Rothman, an investment strategist at San Francisco-based investment firm Matthews Asia, said that it is still possible that the two can achieve reconciliation, "but only through dialogue and more engagement."

And one analyst, Jordan Rohan of Stifel Nicolas, just upped his projections on fourth quarter Kindle Fire sales from an estimated five million to six million. Rohan contends that Amazon.com’s attractive price on the Kindle Fire, 9, is helping it win customers.

Analysts said the MLF operation was aimed at offsetting the impact of government bond issuances, tax payments, quarterly regulatory assessment on banks and a stronger demand for cash ahead of the Mid-Autumn Festival and the National Day holidays.

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