#BotOrNot #BotOrNot

Recent reports indicate that a market-making entity associated with the GoPlus Security (GPS) token on Binance engaged in manipulative trading practices, potentially using automated systems (bots).

What Happened?

After Binance listed the GPS token, it experienced a 25% surge followed by a 60% crash, raising concerns about manipulation.

Binance’s investigation revealed that a market-making firm linked to both the GPS and MyShell (SHELL) tokens used manipulative tactics, including executing large sell orders without matching buy orders—this is a classic form of bot-driven market manipulation.

It’s likely that the manipulation was bot-assisted because:

1. Speed & Scale – Large-scale manipulative trades are typically executed by automated bots for precision and rapid action.

2. Spoofing & Layering – Bots can place and cancel fake orders to simulate demand or suppress price movement—similar to what happened here.

3. Pattern Detection – The coordinated nature of the trades suggests algorithmic execution rather than manual intervention.

Binance’s Response

1. Banned the market maker involved in manipulation.

2. Seized profits from the manipulative trades.

3. Announced a user compensation plan to reimburse affected traders.

Trading using bot to manipulatrd market caused unfairness and may hurt the market.