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Spoofy - the Bitcoin manipulators Anonymous Sun Aug 6 07:19:28 2017 No.2968160 [Reply] [Original]

Spoofy is group of traders (possibly even Bitfinex themselves) manipulating the price of Bitcoin:

1) placing large bids ($2M and up) for Bitcoin, usually just under a smaller bid order, only to remove them once someone starts to sell. These orders usually have a lifetime of minutes, or sometimes as short as 5–10 seconds to manipulate the price up (more common);

2) placing large asks ($2M and up), for Bitcoin when he wants the price to go down, or stop going up (less common);

3) occasionally ‘Spoofy’ will allow orders deep in the orderbooks to remain for a few hours, usually $50–$100 below the current price. For example, during the recovery above $2,000, he had roughly 4,000 BTC of false orders in the $1,900 range that were unlikely to execute, and ultimately were never executed.

What is ‘Spoofing’, you may ask?
>Spoofing is placing orders which you have no intent on allowing to execute.

The goal of spoofing is to send false signals to other traders that they will act upon. Placing a large bid may indicate bullishness, causing traders to close short positions and possibly even buy Bitcoins.

You can profit from this by placing asks for your own bitcoin, then send false signals for bullishness, and people close short positions by buying your Bitcoins you have on ask orders.

You can also do the opposite. Placing large asks indicating bearishness, causing people to close long positions, perhaps also into your buy orders.

Bitcoin exchanges are largely still unregulated and do not police for spoofing, wash trading, and other shenanigans.

>Spoofy is able to manipulate the prices so easily because he simply outwhales everyone else on the exchange. Spoofy is a single entity with between $20 million and $60 million USD on Bitfinex, but it could be more.

In order for someone to combat Spoofy (by dumping into his orders before he can remove them all), they’d have to put a lot of money on the exchange.

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