What Is “Order Book Stuffing” and How Can It Be Used to Intentionally Mislead Iceberg Detection Algorithms?

Order book stuffing, or "quote stuffing," is a form of market manipulation where a trader places and quickly cancels a huge number of orders to flood the market with data. This can be used to mislead iceberg detection algorithms by creating "noise" that masks the consistent pattern of an iceberg's replenishing orders.

The flood of fake orders can overwhelm the detection logic, making it difficult to distinguish between the genuine, small iceberg fills and the massive amount of rapidly changing, phantom liquidity. This allows the manipulator to hide their own iceberg or to disrupt a competitor's execution strategy.