Market manipulation poses a growing threat to both crypto and traditional financial markets. While some instances are overt, many manipulation schemes are subtler and increasingly organized, involving well-funded networks that coordinate actions across various exchanges. Historical examples such as Thales of Miletus, as well as notorious traders in the early days of crypto, illustrate how manipulation has evolved. Today, the highly fragmented crypto market allows groups of traders to collaborate effectively, utilizing platforms like Telegram to orchestrate market movements. Analyst James CryptoGuru has raised concerns about the risks posed by spot Bitcoin ETFs, which could lead to price manipulations during non-trading hours, impacting leveraged traders. The interconnectedness of crypto markets means that a manipulation attempt on one exchange can create imbalances elsewhere. Despite the use of advanced AI tools by exchanges to combat manipulation, the problem remains challenging. Many manipulative actions fall into legal gray areas, complicating the issue. However, collective vigilance and data sharing are becoming essential strategies to ensure market integrity amidst the threat of coordinated manipulation.

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