Spoofing This large order of placed shares can be interpreted as "spoofing". Spoofing is a form of market manipulation where a trader places large orders that they have no intention of actually executing. The aim is to create a false impression of demand or supply in the market, which can influence the price of a stock. For example, by placing a large sell order, a spoofer can create the appearance of bearish sentiment, potentially driving the price down. Conversely, a large buy order can make it seem as if there’s bullish interest, possibly driving the price up.
Once the market begins to move in the desired direction due to other traders reacting to these large, non-genuine orders, the spoofer cancels them. They might then take an advantageous position in the market to profit from the artificial price movement they’ve created.