DOM is definitely fabricated. My own agent told me that. He takes a listing for 60 days and if it doesn't sell he relists it.
If so, they are hurting everyone. If I am a seller, I see these small DOM and think the market is healthy and not price it low enough to sell, thus chasing the market down. If the MLS can be made to reflect true DOM, potential sellers will get shivers in their spine on seeing DOMs like 180/ 360/540 and will price it aggressively, shortening the suffering for everyone.