This scenario is not just "buying OTM call options", just like wash trading is not just "buying stock". This is the problem with your argument. You oversimplify

This scenario is not just "buying OTM call options", just like wash trading is not just "buying stock". This is the problem with your argument. You oversimplify the issue. Wash trading is a way of buying/selling stock, (namely by one party at the same time), which can be abused to manipulate prices. Just like what is happening here is a way of buying stock and its options (namely by one party at the same time, repeatedly), which can be abused to manipulate prices.