If one person had enough money and one to a few variances of bots to become completely embedded in Mt Gox so that anything being sold and bought was being bought and sold through them.
For instance anytime someone went to sell, it would be buying, at the price it set, anytime you buy you are still buying at it's set price. Then when it needs to balance itself we see large jumps and drops.
There really is no way around it is there?
Since most market participants trade to maximize profit, what would be the motivation to fight supply and demand?
Fortunately other markets are growing is trade volume and starting to lessen our dependence on there being just one exchange or where price is primarily determined by a single exchange.
Well in this scenario, the price wouldn't move as incoming funds are going to the person creating the layer, and if someone did want to cashout it would still be profit, however they wouldn't be getting the actual value. I think what it would be doing is keeping it low enough so that people will buy in but still low enough so that people don't cashout.
*changed "however" from "because", it makes more sense.