Every exchange has a software that manages the coins inside the exchange. Lets suppose that software name is BEN*.
BEN* main job is to keep the fiat value of a coin equal to the conmarketcap one.
So, for example when a coin value at the current BTC price is 20$ and BTC start to rise, BEN* start to sell your coins( you gonna see a sell walls came up) .this action preserve the Fiat value of the coin itself but decrease the satoshi price.
Now this is totally "fine" if this was not manipulated. Decreasing the price of a coin BEN* hit the support level causing also flash crash and annoying dip.
If the BTC price go down BEN* start selling again and again to hit the support level causing this time a losss also in the Fiat value.
The main focus of BEN* is to get to keep as much BTC as possible form all the trades, or people will be rich in no time and alts will sky rocket without any obstacle.
BEN* is a beast. He is the one who take most profit from you. Learn how to take advantage of it.
Thanks for reading!
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