Solana bot turns just $12,000 into $1.4 billion in trading volume as fake liquidity floods Raydium

A single Solana wallet generated $1.4 billion in suspected wash trades, accounting for nearly a quarter of Raydium's concentrated-liquidity volume.On Oct. 21, blockchain analytics firm Bitquery reported that the wallet accounted for 22.7% of the $6.17 billion traded across Raydium's concentrated liquidity market maker (CLMM) pools between Sept. 21 and Oct. 20.The investigation identified 108,871 swaps across 438 pools, many containing tokens that imitated established cryptocurrencies such as XRP, Litecoin, Monero, and Lisk. Bitquery traced the activity to a suspected wash-trading operation that used about $12,000 in working capital to repeatedly generate transactions worth millions of dollars.The findings raise fresh concerns about the reliability of decentralized exchange trading volumes and liquidity figures, which investors frequently use to assess market activity and determine whether tokens can be bought or sold without substantial price disruption.The operation relied on rapidly buying tokens and selling them back into the same pools, allowing a relatively small amount of capital to generate substantial reported turnover.In one Oct. 20 transaction, the wallet exchanged 11,102...