Gilovich, Vallone & Tversky (1985) asked a clean question: after a streak of makes, is the next shot more likely to go in than after a streak of misses? They found no difference and concluded the hot hand was an illusion. The conclusion held for thirty years. The estimator they used does not.
1 · The estimator is biased on a coin
Take a shooter with provably no hot hand — independent flips of a fair coin — and run the exact GVT statistic: the probability of a make after k prior makes, minus the probability after k prior misses, averaged per record. If the method were sound this is zero. It isn't: selecting the shots that follow a streak inside a finite sequence is a biased sample, so the next shot is, on average, a make less often. The more of the streak you condition on, the worse it gets.
2 · The bias lives at the operating point
Here is the part that turns a curiosity into a law. The bias is not a fixed quirk — it is wired to the sample size, and it explodes precisely where the data is thin, which is exactly the regime a real study lives in. Give the method tens of thousands of shots and it nearly behaves; give it a realistic game record and it lies by tens of points.
The method is honest where you don't need it and wrong where you do — the same trap we keep measuring across finance, networks and memory.
3 · A measured zero hides a real streak effect
Now inject a genuine hot hand of known size and see what the GVT statistic reports. Because the estimator starts about 8 points low, it takes a real +8-point streak effect just to drag the measurement up to zero. So the original "no difference" is not evidence of no hot hand — it is evidence for a hot hand of roughly the size that was being dismissed.
What it generalizes to
This is one instance of a pattern we found by rebuilding two dozen claims: a standard method, calibrated on easy data, whose error is coupled to the very stress that defines the hard case — small samples here, heavy tails in diversification, correlation in the wisdom of crowds, scarcity in an agent's memory. The number you quote from the demo is a benign-regime mirage. Miller & Sanjurjo (2018) proved the hot-hand correction analytically; this page is just the same truth you can run.
Every chart here is the output of a small, seeded simulation — no hand-tuning, no cherry-picking. The verdict sits in the public ledger alongside its code, next to the other claims we've put on the bench.