What is interesting to see is that an actual market maker is a random guy with a backwardscap that belongs to a certain group of people. Those are not the biggest fish in the tank and they can also get caught. He told the story as if the other side was an insider, and he was just a poor guy trying to run a business, but the reality is that his algorithm was shit and was taking every single order it saw available. Maybe try to run a more conservative algo that does not follow the price recklessly.