Most of the exchanges I see online for Crypto and Bitcoin are run by a couple of guys only.
Let's say a lot of people buy Bitcoin when its at a low price, then it spikes up high and starts to drop again...and now everybody wants to sell it before it drops back to the exchange, how can the exchange afford to pay all these people double or triple the price of what they sold them the coins for?
I don't get it.
The problem u r talking about applies to coin shops/traders like CoinBase who directly buy/sell coin with their own fund. U'll see they always buy low and sell high and they never hold unless they really predict the market to go up for some certain reason.