Furthermore, Huobi traders can use leveraged trades - they offer margin trading at 2:1. Finally, it has also been speculated that because of the 0 fees (and no way to make money except from the interest from margin trading), that it is likely that Huobi is trading on their own exchange. I have witnessed firsthand someone "painting the tape" over there,
in fact a user in China gave screenshots of exactly what I have seen, which are strange 0.001 BTC trades happening.
http://s34.photobucket.com/user/snowfox2002/library/0124?sort=9&page=1I do agree completely, if/when (I believe when, not if) Huobi get shut down, the effect on price could be massive.
How is that any different from Bitstamp. Seen that happen all the time....microtransactions keeping spot nailed to nearest Ask wall. A Bot operators policy as there are always those who just want Bitcoins who simply fill their order at whatever spot is.