Basically for all you/me/we know the exchange has it's own bot running trades and this bot is given information well before it is broadcast to other bots or the GUI on the exchange, fractions of a second is all it takes.
Heh, you basically described how the big stock exchanges work with the large(st) brokerage houses (clients) that do HFT. Someone would call that "an unfair advantage"... but still it is legal. Go figure.
Yeap on Wall Street there are the people who pay thousands a month to rack their servers right next to the exchanges. My understanding is the law in this case sees it as the information is broadcast outside the exchange at the same time and the laws of nature or communication are what dictate that servers a few yards get the information faster than servers hundreds of miles.
IF you want to make money on the street track what congressmen and their staffers do who are involved in any legislation that affects the market. They go trade during the meeting or right after which is generally hours to days-weeks before anyone else knows what the committee has voted on.
But with these crypto exchanges who knows what's going on behind the scenes? Damn with Gox you used to be able to place fake orders on your own,they didn't change that until last April or May. One could list the same BTC for sale numerous times, and conversely place all kinds of buy orders to create the illusion of a massive wall.
Though this bot looks interesting.