In securities trading, the manipulation of market prices is illegal and seriously damages the fairness of the market. The following are some common market manipulation strategies and how they operate. It should be noted that these behaviors are expressly prohibited by global regulatory agencies (such as the U.S. SEC, the China Securities Regulatory Commission, etc.), and violators will face legal sanctions.： --- ###1. Trading manipulation strategy 1. **Increase shipments (Pump and Dump)** -**Operation method**: The manipulator first buys a stock at a low price, and then artificially pushes up the stock price through false trading or spreading positive news (such as false earnings reports, social media speculation), attracting retail investors to follow suit and sell at a high price. -**Case **: In the “Meme stocks” (such as GameStop) incident in the United States in 2021, some investors were accused of cashing out after collectively pushing up stock prices through the Reddit forum. 2. **Knock on (Wash Trading)** -**Operation method**: The manipulator buys and sells between different accounts, creates false trading volume, and induces others to misjudge the heat of the market. It is common in low-liquidity stock or cryptocurrency markets. -**Regulatory response**: The exchange identifies abnormal trading behavior by monitoring the same IP or associated accounts. 3. **Spoofing (Spoofing)** -**Operation method**: A large number of false buy and sell orders are placed in the order book (and then the order is quickly cancelled), creating the illusion of supply and demand, inducing other traders to copy the order, thereby promoting price changes in a favorable direction. -**Technical means**: High-frequency trading algorithms are often used for such operations, and the “flash crash” of US stocks in 2015 was related to fraud. --- ### 2. Information-based manipulation strategy 1. **Spreading false information** -**Operation method**: Spread false news (such as M&A rumors, product breakthroughs) through media and social platforms (such as Twitter and WeChat groups), affect the stock price, and then operate in reverse to make a profit. -**Case **: In the 2018 Tesla privatization tweet incident, Musk was sued by the SEC for publishing false information. 2. **"Oracle attack” (premeditated information manipulation)** -**Operation method**: Layout positions in advance, and then selectively release or exaggerate specific information (such as research reports, rating adjustments) to make profits in line with price fluctuations. --- ###3. Structural manipulation strategy 1. **Cornering the Market (Cornering the Market)** -**Operation method**: By controlling most of the circulating chips of a certain target (such as commodities and small-cap stocks), it artificially creates an imbalance between supply and demand, forcing short sellers to sell at a high price when closing their positions. -**Historical case**: The “Hunter Brothers Silver Manipulation Case” in the 1990s, which tried to monopolize the global silver market, causing prices to skyrocket and plummet. 2. **Collaborative manipulation (Collusion)** -**Operation method**: Multiple institutions or individuals conspire to agree to centrally buy and sell or publish consistent information at the same time to amplify market influence. --- ###4. Supervision and prevention -**Technical monitoring**: Exchanges use big data to analyze abnormal trading patterns (such as sudden increases in trading volume, price deviations from the index, etc.). -**Legal penalties**: Laws of various countries, such as Article 9(a)(2) of the U.S. Securities and Exchange Act and Article 182 of China's Criminal Law, expressly prohibit market manipulation, and violators can face high fines, market bans, and even criminal liability. -**Investor education**: Be wary of words such as ”steady income without loss“ and ”inside information" to avoid becoming victims of manipulation. --- ### Important note： The above strategies are all illegal and illegal acts, which not only damage the market order, but may also cause manipulators to be exposed to legal risks. Investors should invest rationally through compliance channels (such as fundamental analysis and quantitative models), and actively report suspicious transactions to regulatory agencies.