Solana Memecoin Market Manipulation: Trading Bots Fuel FOMO and Liquidity Distortion

Pump.fun, a Solana-based memecoin launchpad, is under fire for suspected market manipulation by trading bots, according to DeFi researcher Naveen. These algorithmic traders reportedly create false liquidity through high-frequency trades, skewing market dynamics and impacting the platform’s trading signals. 60-80% of trading volume on Pump.fun tokens are attributed to bots, creating a feedback loop that fuels fear of missing out (FOMO) and potentially facilitates exit routes for these algorithmic traders.