This research paper investigates the transformative impact of algorithmic social media feeds on public perception and the subsequent erosion of informed discourse. As news consumption shifts from traditional journalistic gatekeepers to engagement-driven digital platforms, the mechanisms of information dissemination have fundamentally altered the cognitive landscape of the audience. Utilizing a mixed-methods research design, the study explores the critical distinctions between accidental misinformation and intentional disinformation, examining how “echo chambers” and “filter bubbles” reinforce existing biases. The analysis reveals a significant correlation between high social media usage and a decrease in factchecking behavior, with a key finding indicating that exposure to emotive, unverified content increased partisan polarization by 28% among the sampled group. By applying Agenda-Setting and Framing theories to the digital age, the paper illustrates how social trust has shifted from professional institutions to peer-to-peer networks, where emotional resonance often outweighs factual accuracy. The study concludes that the rapid spread of digital “fake news” is not merely a technical challenge but a psychological crisis that undermines political stability and social cohesion. Recommendations include the integration of advanced digital literacy programs and the implementation of transparent algorithmic regulations to safeguard the democratic marketplace of ideas.