It's an arms race between high frequency traders who want to game the system and those who want functioning Bitcoin exchanges for price discovery. If Bitcoin cannot win the algorithms arms race it's over for Bitcoin.
Here is an article below which highlights the problem which exists in traditional markets and which came to Bitcoin when Bitcoin went mainstream.
http://theconversation.com/out-of-our-hands-the-hidden-dangers-of-high-frequency-trading-3750Most of us remember that as soon as the so called "big money" and "big boy" players got involved with Bitcoin then suddenly there have been DDOS attacks, high frequency trading, and other hostile algorithm based manipulation. The only solution is to come up with algorithms to prevent hostile algorithms but that enters us into the domain of whitehat vs blackhat. The blackhats currently are turning Bitcoin into a speculative game to test out their new trading algorithms.
The per-order fee is already a huge barrier to high-frequency trading.
The failure of Mtgox seems to be their trading algorithm. However, the other exchanges are not doing any better. It's what you get when you let computer experts write market making software: rollercoasters. Of course it's gonna be exploited by people who know how to ride them.
