Manipulation of this type exist in all markets including stocks and forex and that is why I agree with this saying that "The rich and those with huge capital markets more profits than loses " because they can turn the loses to profits through manipulation like the one you have given. The wise thing is to know when this manipulation is going on and when really traders are taking investments decision and invest on both sides by staying in the same directions.
Not really, rich people who have large capital are not fully able to manipulate the market. Those who are able to do that are only for those who can play roles, well the intention is to spread the FOMO and the FUD to encourage their manipulation.
If they only rely on order books, their manipulation will not succeed. Sometimes novice traders don't pay attention to order book, they are more active in the community or chatbox. There we will find many manipulators roaming, at least we must be able to control ourselves in such a market.