No you just wanted to sell less than 5000 and the threshold for the MM to include it is 5000. While I agree it is stock manipulation it is just another loophole in the system that is exploited
I would say that it is the opposite of stock manipulation. To manipulate a stock you make small visible orders. This is an attempt to make as large an order as possible Invisible.
This might work with some stocks but for KBLB your "opposition" is usually a market maker himself, so he sees these orders anyhow.