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What is quote stuffing in forex and why is it disruptive?

Quote stuffing occurs when manipulators flood the market with large numbers of orders and cancellations in milliseconds, overwhelming systems and slowing competitors. In forex, HFT firms may stuff quotes to gain latency advantage. Benefits for manipulators: creating artificial lag to capture arbitrage. Risks: regulatory scrutiny, technological arms races, and reputational harm. For retail, the impact is indirect—slippage and sudden spikes. Regulators increasingly classify quote stuffing as manipulation. The lesson: not all volatility is organic—sometimes, it’s engineered to exploit microsecond inefficiencies.