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How Does the Use of a “Circuit Breaker” Relate to Preventing Price Manipulation?

A circuit breaker is an automatic mechanism that temporarily halts trading or limits price movement when volatility exceeds a predefined threshold. This pause is designed to cool down the market, prevent panic selling, and stop manipulators from exploiting rapid price swings to trigger mass liquidations before the market can stabilize.

What Is a ‘Circuit Breaker’ and How Is It Designed to Prevent Flash Crashes?
How Do Price Limits Differ from Trading Halts as a Circuit Breaker Mechanism?
What Is the Difference between a Stop-Loss Order and a Stop-Limit Order in Crypto Trading?
What Is the Purpose of “Circuit Breakers” in Derivatives Exchanges?