3 ms·

Squeezing a short is different then a pump and dump.

• jermaustin1 6y ago
  When it succeeds, and the originators of the squeeze don't sell beforehand.
  • vetinari 6y ago
    As it was said in previous days: they (the originators of the squeeze) can remain irrational longer, than the other side (hedge fund managers) can remain solvent.
    • jermaustin1 6y ago
      True, but if they sell a massive position and the stock tanks, and a bunch of little guys are left to hold the bag, I could see the SEC definitely investigating it as a pump and dump.
      • monadic3 6y ago
        Might as well try to hold water in a sieve. What are they gonna do, charge tens of thousands of people?
      • vetinari 6y ago
        If the bunch of the little guys invested each just few hundred, it is not that a big loss. So if they end up holding the bag, it will be distributed among big crowd, where each member would be missing just a little. Of course, if someone went above that and invested an amount, where losing it would hurt, that's different.