Newton famously lost his shirt in the South Sea Bubble. How could he, of all people, fall for this rather obvious swindle? Well, many highly intelligent people seem rather gullible.
Highly intelligent people are good at recognizing patterns in IQ tests and presumably in real life. Possibly they get more false positives than less intelligent people; they sometimes recognize patterns where no patterns exist.
If combined with arrogance and an inability to listen to others, there is no error correction. This agrees well with the observation that highly intelligent, arrogant people tend to go off into imaginary cloud-cuckoo-lands.