Credit to Gasparino for his initial reporting. But he is exposing himself by calling Judge Torres a moron for her ruling which was a common sense ruling. He has a dog in the fight, he wants Ripple to lose. 

Judge Torres clearly stated secondary market sales are not securities because many investors would not know who the hell Ripple is and the token does not give them any rights/shares to Ripple the company. The institutional sales have a contract and there is a clear understanding of the tokens are being sold by Ripple the company, thats why these were ruled as securities. Gasparino knows this, but there is something he is hiding.