Distrust of management is extremely common. I cannot stress enough just how common it is both in the military and the corporate world or how potentially toxic this is. Most people outside of management are absolutely incapable of seeing it, even when its excessively rampant, because they don't recognize the symptoms. The common reasons for not recognizing such symptoms, even when immediately apparent and excessive, are due to: self-centered desires, incompetence, and perceptions of hostility.
Trust issues can occur from top down as well as bottom up. I have observed management not trusting their people far more commonly than opposed to people not trusting their management. When management does not trust their staff the staff will not be used or properly developed. It may be that the leadership believes it takes less effort to do the job themselves than watch their staff struggle and fail. This is a benign form of toxic leadership. Staff must be made to do their jobs and properly mentored to just before the point where the incompetence is likely to result in criminal/policy violations or immediate harms.
Yes, that is also correct. Toxic behavior is present for a variety of unrelated reasons of which many can be cured with a humble dose of self-reflection. Sometimes that lack of self-awareness becomes catastrophic in extreme cases like Bathsheba Syndrome.
People occupying positions of management are more capable of seeing trust issues simply because they have the responsibility to talk with subordinates of their own and reason upon the effectiveness of that dialogue. People without managerial experience generally lack the tools to perceive the behaviors driving the decisions thrust upon them. People outside of management also tend to lack the necessary exposure to situations where these behaviors are present.
There is also the power dynamic. A boss can more easily terminate a toxic employee than an employee can terminate a toxic boss. This power distance prevents many toxic employees from establish trust issues against a superior until there exists a pattern of identifiable behavior beyond a single employee.
Trust issues can occur from top down as well as bottom up. I have observed management not trusting their people far more commonly than opposed to people not trusting their management. When management does not trust their staff the staff will not be used or properly developed. It may be that the leadership believes it takes less effort to do the job themselves than watch their staff struggle and fail. This is a benign form of toxic leadership. Staff must be made to do their jobs and properly mentored to just before the point where the incompetence is likely to result in criminal/policy violations or immediate harms.