FSC reports suspect for 3-minute 'racehorse' crypto manipulation

South Korea's Financial Services Commission (FSC) has reported an individual to law enforcement for alleged ultra-short-term cryptocurrency price manipulation, Financial News reported. The suspect allegedly exploited what is known as the 'racehorse effect' to induce follow-up buying from retail investors, realizing hundreds of millions of won in profit in just three minutes before exiting the position. According to the FSC, the scheme centered on the moment when a crypto exchange's daily price change data is reset. The individual would reportedly pre-accumulate a specific cryptocurrency at a low price. Then, at the exact moment of the reset, the suspect would place a single, large buy order worth hundreds of millions of won at a price exceeding the 10th ask price.