A trader from Nomura Holdings Inc. executed a series of complex transactions on the Osaka Exchange in 2021 using a tactic called layering, which involves spoofing.

During a five-hour period, the trader offered to sell derivatives tied to more than a billion dollars' worth of Japanese government bonds and then promptly canceled these positions.

As a result, competitors reacted by lowering their prices, allowing the trader to take advantage of the situation by purchasing the now cheaper contracts and subsequently reselling them.

Although this strategy seemed profitable at first, it ultimately led to significant losses for Japan's largest securities firm.

This incident serves as a reminder of the risks associated with aggressive trading tactics in the financial markets.