“Crazy Man’s Handcuffs” was invented by Arthur Setterington, who published it as “Getaway” in the May 1970 issue of Peter Warlock’s New Pentagram, Vol. 2 No. 3, p. 22. It was refined by Herb Zarrow and published as “The Uncanny Penetrating Rubberbands” in Tarbell Course in Magic Volume 7 (1972, p. 214) without credit. (For this information, see David Ben's Zarrow - A Lifetime of Magic, 2008, p. 279.)
In the late 1980s Michael Ammar published it in a manuscript using its now popular name, which was supplied by Daryl.