I don't think that's true because the whales barely care about you or those at the lower level, they just buy when others are selling so that they can benefit from it, and they can easily do it because they have enough resources to buy any dip and even if the price goes down after their purchases, they would still have enough to buy again and keep doing DCA. On the other hand, someone holding only a specific amount and having no other resources will be compelled to sell when they are getting some profit that they can use. So, apart from those who panic sell, those who sell at a profit aren't doing anything wrong, IMO.

Of course, they do, and it's because they know they are going to benefit from it. It's our responsibility to make sure that we don't get fooled because those having more resources than us will always try to manipulate us to benefit from us. If I was a whale and had enough funds, I would do my best to gain as much profit as possible even if I had to create panic and manipulate the market for it.