Overleveraged short sales are also bad. The hedge funds wouldn't have been this exposed had they not sold more shorts than there existed shares.
And given the Redditors involved weren't "organized" and were merely making use of the information publicly available, it's hard to claim they were doing anything wrong. This is the invisible hand of the market, people making rational choices based upon the information available to them. The fact an online forum is involved is neither here nor there, as it could
The fact an online forum is involved is neither here nor there, as it could have happened in a town square full of people, with one person pointing out the facts, and others using that information.
The discussions being in an online forum are the most damning part. If it was done with handshakes in a cigar room there wouldn't be much proof. Market manipulation is hard to prosecute because it is often hard to identify and prove. Collaborating in an open forum which is well documented is not a good approach though.
FUBAR (Score:5, Informative)
When AOC and Ted Cruz are on the same side of the table you know things are seriously fucked up.
Re: (Score:3)
Not everything is partisan, some things are just bad.
Re: (Score:0, Flamebait)
Right. Pump and dump schemes organized in online forums are bad. AOC and Cruz are both on the wrong side of this.
Re: (Score:2)
Overleveraged short sales are also bad. The hedge funds wouldn't have been this exposed had they not sold more shorts than there existed shares.
And given the Redditors involved weren't "organized" and were merely making use of the information publicly available, it's hard to claim they were doing anything wrong. This is the invisible hand of the market, people making rational choices based upon the information available to them. The fact an online forum is involved is neither here nor there, as it could
Re:FUBAR (Score:2)
The fact an online forum is involved is neither here nor there, as it could have happened in a town square full of people, with one person pointing out the facts, and others using that information.
The discussions being in an online forum are the most damning part. If it was done with handshakes in a cigar room there wouldn't be much proof. Market manipulation is hard to prosecute because it is often hard to identify and prove. Collaborating in an open forum which is well documented is not a good approach though.
Re:FUBAR (Score:4, Insightful)
Collaborating in an open forum which is well documented is not a good approach though.
Capitol rioters all over again.