The unregulated crypto currency exchanges are the "Market Makers wet dreams".
No psychic illnesses or conspiracy theory here, just criminals, or better call it Market Makers operating in a grey zone.

The casino always wins.

Same for exchanges, they are here for making money, not for their customers to get rich.
Similar things happen in other markets too, but not so obvious, because they have to follow at least some rules.
It went totally crazy in 2019 when binance opened their futures exchanges, of course they are leverage counter trading the crazy bot moves.
Why? Because they can, and it is very profitable and not illegal yet.