The hanger story first appeared (as far as I know) in an Audioholics forum:

Originally Posted By: savelife in the Audioholics Home Theater Forums
Keeping us blind folded, my brother switched out the Belden wire (are you ready for this) with simple coat hanger wire! Unknown to me and our 12 audiophile buddies, prior to the ABX blind test, he took apart four coat hangers, reconnectd them and twisted them into a pair of speaker cables. Connections were soldered. He stashed them in a closet within the testing room so we were not privy to what he was up to. This made for a pair of 2 meter cables, the exact length of the other wires. The test was conducted. After 5 tests, none could determine which was the Monster 1000 cable or the coat hanger wire. Further, when music was played through the coat hanger wire, we were asked if what we heard sounded good to us. All agreed that what was heard sounded excellent, however, when A-B tests occured, it was impossible to determine which sounded best the majority of the time and which wire was in use. Needless to say, after the blind folds came off and we saw what my brother did, we learned he was right...most of what manufactures have to say about their products is pure hype. It seems the more they charge, the more hyped it is.