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"Recently, we witnessed a brutal wave of crypto liquidations that kicked off over the weekend - a time notorious for thin liquidity. $1.8 billion was wiped out of the crypto market in just 24 hours, making it the biggest liquidation event of the year so far.
But, something that stood out was how crypto prices tanked, while stocks moved higher. No obvious catalyst, no breaking news. This points to something all too familiar in these markets: manipulation.
That’s why today, we’re telling you about everything you need to know about crypto market manipulation, why it happens, who’s doing it, and how you can avoid falling into the traps set by so-called “smart money”."
~ Coin Bureau
The video discusses crypto market manipulation, often signalled by large liquidation events without a clear catalyst, such as the $1.8 billion wipeout on September 22, 2025. This manipulation is made possible by high trading leverage, where large players (whales) can force liquidations by pushing prices toward levels where many leveraged positions (longs or shorts) are set to be wiped out. The crypto market is particularly vulnerable due to its low liquidity, especially over the weekend, creating "liquidity air pockets" that are ideal for manipulation. Tactics used by manipulators include wash trading, which creates fake volume to suggest high demand, and spoofing and layering, where large orders are placed and cancelled to distort market sentiment and trigger price volatility. Manipulation has been observed in DeFi through oracle data tampering, as seen in the Mango Market's exploit.
The manipulation works because most retail investors rely on the same predictable technical indicators, making their collective trading behaviour easy to exploit. Larger traders, known as "smart money," use algorithmic trading systems that are immune to emotion to trade against retail investors at key price levels, creating "scam wicks" or "stop hunts" to capture liquidity. Smart money includes venture capitalists who influence prices for profit, institutional investors who exploit their scale to sway sentiment, and even some unregulated exchanges that turn a blind eye to or facilitate wash trading. To protect a portfolio, the video advises recognizing red flags like sharp price moves without a clear catalyst, checking for suspicious trading volume patterns (like flat volume suggesting wash trading), and watching for rapid changes in the order book (spoofing). The best defence is to stay informed, avoid panic selling, conduct thorough research, and set sensible stop-loss levels. The video concludes by noting that current on-chain indicators suggest a potential market bottom may have been set, hinting at a forthcoming upside move.
0:00 Intro
0:50 Recent Wave of Long Liquidations
3:38 Past Cases of Market Manipulation
7:22 Why Market Manipulation Happens
11:45 Who Is Manipulating the Crypto Market?
15:33 How To Spot Market Manipulation
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=C-JPeaDU-j8
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
