The user began noticing that the people who liked his page, also liked thousands of other pages and were particularly disengaged-similar behavior to the likes you receive from like farms. These 'fake likes' behave much differently from 'real likes' as they do not engage (like, comment, or share) your posts. While Facebook claimed to get rid of 83 million 'fake accounts' in 2012, there are still a considerable mass of fake accounts who've managed to avoid Facebook's Fraud Algorithims. How? In order to avoid detection, click farms like pages other than the ones they've been paid for to seem more genuine. It would be very easy to spot fake likes stemming from one geographic region to another in a matter of hours, but mixed in with a slew of other 'like' activity, it would be impossible to identify. So why is this such a big deal? These fake likes are worse than useless, they detract from your page.
When you make a post, Facebook distributes it to a small fraction of the people who like your page just to gauge their reaction. If they engage your post by liking, commenting, or sharing it, then Facebook distributes the post to more of the people who like your page. However, if you amass a number of fake likes, then Facebook's original distribution goes out to fewer real fans resulting in lower engagement, consequently reaching a smaller audience. This is how a rising number of likes can result in lower engagement. So ultimately Facebook makes you pay twice, once to acquire new fans, and another time to engage them.
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