Let's say I want to make a large transfer to an exchange. I am sure to verify the receiver address. However, if the exchange made a mistake somehow, all the bitcoin would be lost forever. So does it make sense to send a small amount first, confirm that they receive it, and then send the rest?
Because I have also heard that each address should not be used more than once.
You clearly said that if they make mistake, all the btc will lost forever then its the responsibility of the exchange to pay what you have lost id this is the case and I will suggest if its kinda large amount of money please use reputable exchanges only like Binance, Kucoin, Coinbase only.