Volume Mirage: How Fake Trading Activity on Crypto Exchanges Leaves US Investors Stranded at the Order Book
Billions in reported daily volume sounds reassuring — until you try to move a meaningful position and watch your fill price collapse in real time. Wash trading, spoofing, and fabricated order book depth have created a systemic illusion of liquidity across many cryptocurrency exchanges. This guide breaks down how phantom volume is manufactured, why it matters for US retail investors, and how to distinguish genuine market depth from statistical theater.