Market makers use paper hands and leveraging apes to suck money out of the spot market, then they buy at cheaper prices via OTC or from miners.
Practically buying cheaper corn using the money of the weak.
Indeed. Don't think of online exchanges as price discovery. They are the realm of people who don't know anyone.
They have been the realm of people who do not know any/one/time/more for years.
And the price oracle for fools.
Perhaps we will learn.
Until then edges will be exploited.