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RE: BLOODBATH IN STEEMIT'S INTERNAL MARKET - HERE'S WHAT'S GOING ON!
If they are manipulating it like your research suggests - and if so more than likely they would be trading to take advantage of it (else why bother manipulating the market) - then that would be extremely illegal. If it were traditional finance similar actions would risk jail for much less.
Nothing is illegal if you don't get caught and the more money and power you have, the less you're likely to get caught because you can simply bribe anyone you want!
I think it is illegal - it's insider trading