Can anyone tell me how this might be stopped? If this theory might be correct? Better ways to pull it off?
Selling BTC at progressively higher rates doesn't change the value of BTC. If you have 1000 BTC which you bought at $10 and you sell them at progressively higher rates (say one at a time). You can only sell at a higher rate if there's someone who is willing to buy at a higher rate. If nobody is willing to buy your order just sits there until someone does.
Bang on, Bitcoin is by design deflationary, deflation by its design encourages saving, you just need to follow human nature.
By contrast the biggest scam ever undertaken is fractional reserve banking and the resulting inflation, arguably just the central bank controlling interest rates. With inflation you cannot beat the system because as you save the value is lost from your savings account. You have to become increasingly more productive just to survive.
You only lose with Bitcoin if you sell out for less, it's all up to you.