Yes, but what the parent poster described is moronic for an HFT to do. If they see a limit order come in, there is no incentive to push the price beyond the limit order. Why would that help them in any way? There is no implication that the person issuing the limit order will suddenly decide to pay more.

Additionally, to push the price up in the first place, it means the HFTs have to buy all of the stock being sold below the target price, which is taking on major risk. There is no guarantee that there isn't someone simultaneously dumping big chunks of shares at given price targets.