AI-driven forex trading introduces concerns about market manipulation, as advanced algorithms can exploit inefficiencies and impact price movements unfairly. One major concern is high-frequency trading (HFT), where AI executes trades at lightning speed, taking advantage of minor price fluctuations before human traders can react. This can create an uneven playing field, favoring institutional investors while disadvantaging retail traders. Another issue is spoofing and layering, where AI algorithms place large fake orders to create artificial demand or supply, only to cancel them before execution. This deceptive tactic misleads other traders and distorts market prices. Flash crashes are also a risk. AI systems reacting to similar signals simultaneously can trigger rapid price swings, wiping out liquidity and destabilizing the market. The 2010 "Flash Crash" highlighted how algorithmic trading can contribute to extreme volatility. Regulators face challenges in detecting and preventing AI-driven manipulation due to the complexity and speed of these algorithms. Increased oversight, transparent AI models, and stricter enforcement of anti-manipulation laws are essential to maintaining fair and stable forex markets.