Sure, a very common game right now is quote spoofing (that is already illegal in the US) but still happens and exists on Eurex.
Very fast player X puts a few (<10) big orders on one side of the order book at a level that has some but not a lot of quantity in front of him (using random quantity to make it hard to recognize) making it look like there is more demand than there is.
This will cause other participants to quote at this same level. Once enough orders have been entered behind him, he will yank all of his orders and then cross through that level (or even through 2). He has flipped a level.
His speed allows for 2 properties that make this much easier:
1. He is taking much less risk with his spoofed orders turning into real orders because he can cancel them fast when the market conditions indicate they might get filled.
2. His targets can't catch his cancels/fill through order fast enough to get out of the way.
He can keep his fill ratios within the correct boundaries with no problem.
Very fast player X puts a few (<10) big orders on one side of the order book at a level that has some but not a lot of quantity in front of him (using random quantity to make it hard to recognize) making it look like there is more demand than there is.
This will cause other participants to quote at this same level. Once enough orders have been entered behind him, he will yank all of his orders and then cross through that level (or even through 2). He has flipped a level.
His speed allows for 2 properties that make this much easier: 1. He is taking much less risk with his spoofed orders turning into real orders because he can cancel them fast when the market conditions indicate they might get filled. 2. His targets can't catch his cancels/fill through order fast enough to get out of the way.
He can keep his fill ratios within the correct boundaries with no problem.