The nature of the fake trades these folks injected into the market were different from what you are positing. They would place large limit orders In the market indicating A sudden high demand for some particular underlying. The limit orders would not fill, But other market participants would see the enhanced demand for a long position, for example, and follow on with their own long orders. And then these guys would place market orders short the market, When these guys then canceled their long limit orders, the perceived demand would apparently disappear from the market. They then placed short bets and the followers of their trading would find themselves on the wrong side of the market. That is how spoofing works.
Thank you for your far-better description of what was (likely) taking place!
(I had known that my scenario was probably a gross oversimplification and maybe even distortion of the true circumstances.)
QUESTION: Does the act of placing a large limit order cost money? I.e., is there a fee associated with it? Would that cut into their (illegal) profits?
Regards,
Are/have you been a trader?