I have recorded the L2 on a number of stocks I own. I have proof that certain MM's lock and box securities controlling the bid and ask. While doing this they ask block the stock from moving while loading themselves on the bid trading with themselves...
I even recorded MM's pushing someone else bid out of the way to fill themselves when their MM wasn't in 1st position at the current price. Time stamps prove all and it was irrefutable proof.
I will agree that if a whale does buy up a 100+ million shares and does do the limit sell thing as you describe, it can have the effect you're talking about.