What is spoofing? Spoofing is a form of market manipulation in which a trader places one or more highly-visible orders but has no intention of keeping them (the orders are not considered bona fide). While the trader’s spoof order is still active (or soon after it is canceled), a second order is placed of the opposite type.
For example, a short seller places a large sell order, only to cancel it and place a buy order. The sell order drives the price of the stock down, while the buy order takes advantage of the lower price. The spoof sell order allowed the trader to execute the buy trade at a better price than if the spoof sell order had not been placed.