Oddly enough, in financial markets people do not rely on self-correction for manipulation, but rather there is a tendency for it to be illegal. Market manipulat

Oddly enough, in financial markets people do not rely on self-correction for manipulation, but rather there is a tendency for it to be illegal. Market manipulation is in general not believed to make markets more accurate. Any kind of the suggested self correction here relies on the other traders having sufficient funds/capital/risk taking capacity to overcome the manipulator and to coordinate their views to some extent. In the CEO example, how would other traders even now that the CEO was making the bet? What if some other informed party made that bet? In small, open, and rather serene settings that might work out, but in a real market with fast movements, market makers, etc.?