Question: Is it permissible that I buy merchandise from a man, then leave it with him and tell him, “I will bring a man or two; we will buy this merchandise from you, so raise its price,” then I bring two men and I and they buy that merchandise in halves at the raised price; thereafter we go to the market and sell, and I proceed to lower the price greatly, which leads to a loss for that buyer whom I brought—or causes him to be stuck with his goods?
The answer: Such conduct is not permissible, and it is not fitting for a Muslim to enter into it. The Messenger of Allah—May Allah bless him and his family and grant them peace—prohibited such a thing; it is authentically narrated that he—May Allah bless him and his family and grant them peace—forbade najsh—and najsh is that you bid up the price of a commodity (or cause another to do so) in order to deceive the purchaser into buying it at that price, or to bewilder the seller.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2