#BotOrNot Binance Cracks Down on GPS Token Manipulation
A market-making firm linked to the GoPlus Security (GPS) token on Binance was found engaging in manipulative trading, likely using bots.
What Happened?
After Binance listed GPS, its price initially surged 25%, only to crash 60%, raising red flags.
Binance’s investigation revealed that an entity associated with GPS and MyShell (SHELL) placed large sell orders without corresponding buy orders, a classic sign of bot-driven manipulation.
Why Bots Were Likely Involved?
1️⃣ Speed & Scale – High-frequency, large-volume trades suggest automation.
2️⃣ Spoofing & Layering – Fake orders were placed and canceled to mislead traders.
3️⃣ Pattern Detection – The synchronized nature of trades points to algorithmic execution.
Binance’s Response
✅ Banned the market maker.
✅ Seized profits from manipulative trades.
✅ Announced a user compensation plan.
Market manipulation via bots creates unfair conditions, distorting prices and harming traders.
