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Market Manipulation

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Wash Trading
Glossary

Wash Trading

Imagine you're at a carnival, and you spot a game where you can win a massive teddy bear by tossing a ring onto a bottle. Sounds simple enough, right? But what if the carnival worker running the game keeps secretly removing and replacing the bottles, making it impossible for anyone to actually win? That's kind of like wash trading in the financial markets – a shady practice that creates an illusion of activity without any real substance.