autobid resulting in churn?

I'm relatively new to FC and don't use autobid but because of my portfolio choices I'm noticing in some cases the same loan parts go through a spinner of sorts that I can't see benefits anyone except FC.

Scenario:
a loan part gets placed on the secondary market at par
it gets hoovered up by autobid
people that look at what autobid gives them put it back on the SM because it is looking uncertain
it gets hoovered up by autobid
repeat (no rinse)

Surely this means that autobid / can't / don't / won't check people end up with genuine dregs?

The loan I'm thinking about is looking likely to fail before first or second payment but I understand it is best not to be too specific here and this isn't about a specific loan but about autobid finding the lcd in investors.

I think it's unlikely the same part is churned in the way you suggest.   There are quite a few users with robots logged on 24hrs a day.  These will pick up any part on the SM listed at par and immediately relist it at a 0.3% to 0.5% premium long before autobid gets a chance to buy it.

At 0.3% a bot owner is looking at 1p profit on a £20 part plus whatever interest is gained whilst holding and waiting for a manual buyer (autobid only trades in par parts).
If they have a large enough sum invested and there are enough par parts then they might make enough profit to cover the electric costs in running the PC.   Can't see the point myself.

J

I'm saying bought at par and then asap sold at par, maybe it is a broken bot rather than autobid but the behaviour isn't that of a person.
OK let's say autobid OR a broken bot

I keep an eye on the secondary market looking to pick up bits of C and D loans at par that I missed on the primary. While the majority of them are, as expected, parts coming up to a payment date, I sometimes see parts only a few days old being listed at par, so a guaranteed loss for the seller. There's enough of them to suggest a broken bot is out there somewhere.