Market manipulation is a deliberate attempt to deceive and defraud investors by artificially influencing supply or demand for a security and driving its price up or down. Those who orchestrate manipulated price movements profit at the expense of other investors.

Market manipulation is not always obvious. At the request of the Reddit page "wallstreetbets," retail investors banded together in January 2021 to counter a hedge fund's short position in GameStop stock. While this drove the price of GameStop stock up significantly, it quickly fell back.

Stock market manipulation is the illegal practice of artificially inflating or deflating stock prices to mislead investors. It distorts market fairness and creates false demand or supply, leading traders to make uninformed decisions. Common manipulation tactics include pump and dump, where fraudsters hype a stock to attract buyers before selling at a profit, and spoofing, where traders place large fake orders to deceive others about market direction.

Other forms include insider trading, wash trading, and bear raiding, all aimed at creating unfair advantages. Regulatory bodies like the SEC impose strict penalties on manipulators. Investors should analyze market trends, verify sources, and avoid emotional trading to protect themselves from manipulation schemes and maintain fair market participation.