1) Spoofer places an offer to sell a small amount at a high price.
2) Spoofer places a bid to buy a huge amount at a lower price.
3) The huge order to buy makes other buyers think the price is about to increase significantly, so they immediately buy at the Spoofer's higher price even though they would otherwise prefer to wait for a lower one.
4) Spoofer immediately cancels their large order to buy before anyone takes it.
5) Spoofer waits awhile and then goes back to 1), but reverses the buy/sell orders so they can capture an illicit profit.
1) Spoofer places an offer to sell a small amount at a high price.
2) Spoofer places a bid to buy a huge amount at a lower price.
3) The huge order to buy makes other buyers think the price is about to increase significantly, so they immediately buy at the Spoofer's higher price even though they would otherwise prefer to wait for a lower one.
4) Spoofer immediately cancels their large order to buy before anyone takes it.
5) Spoofer waits awhile and then goes back to 1), but reverses the buy/sell orders so they can capture an illicit profit.