Proxy manipulation occurs when a false dhcp server that can provide ip address configuration leases for a unique subnet and define the default gateway because the hacker's computer acts as a mitm router/proxy.

True. A hacker in proxy manipulation may host a false proxy server or better known as a rogue DHCP and is able to modify the proxy settings on a client to redirect traffic to another system. The hacker is able to reconfigure a client’s proxy configuration.