4 ms·

I have a lot of trouble with this frame. Yes, hedge funds are bad. Yes, it's hilarious watching those shorts get squeezed. No, WSB are not modern Sherwood ba

I have a lot of trouble with this frame. Yes, hedge funds are bad. Yes, it's hilarious watching those shorts get squeezed. No, WSB are not modern Sherwood bandits trading on Robinhood. They are also engaged in what is pretty clearly a criminal conspiracy to commit securities fraud (and yes, a deliberate attempt to trigger a short squeeze is securities fraud), and they're doing it on an open internet forum. This is not going to end well for anyone involved. Demonizing your enemies and styling yourself a hero of the people does not protect you from prosecution. We just saw that in the capitol not three weeks ago. As for GME? Yes, that stock is coming down. Yes, the hedge fund can probably arrange financing to hold longer than the bandits can. Yes, it's probably going to be the "little guys" holding the bag at the end of this. It's criminals all around as far as I can see.

mcherm 6y ago
> yes, a deliberate attempt to trigger a short squeeze is securities fraud Can you provide a source for that statement? > Yes, it's probably going to be the "little guys" holding the bag at the end of this. I agree 100%.
snickms 6y ago
I'm not convinced that a plot formed openly on the internet actually qualifies as a conspiracy. I'm sure things would have worked out differently for Nixon had he distributed a press release regarding an up-coming DNC burglary beforehand.
gnfargbl 6y ago
Assuming you're correct and this behaviour is illegal, who could the SEC prosecute? The ultimate instigator, u/deepfuckingvalue, posts nothing but screenshots showing his position, without further comment. There don't appear to be any specific organizers within the group, and many posters claim that they are buying simply because they "like the stock." That would be a risible position for an institutional investor, but as these are individual retail investors it seems like it would be tricky to prove malfeasance.

mcherm 6y ago

> yes, a deliberate attempt to trigger a short squeeze is securities fraud Can you provide a source for that statement? > Yes, it's probably going to be the "little guys" holding the bag at the end of this. I agree 100%.

snickms 6y ago

I'm not convinced that a plot formed openly on the internet actually qualifies as a conspiracy. I'm sure things would have worked out differently for Nixon had he distributed a press release regarding an up-coming DNC burglary beforehand.

gnfargbl 6y ago

Assuming you're correct and this behaviour is illegal, who could the SEC prosecute? The ultimate instigator, u/deepfuckingvalue, posts nothing but screenshots showing his position, without further comment. There don't appear to be any specific organizers within the group, and many posters claim that they are buying simply because they "like the stock." That would be a risible position for an institutional investor, but as these are individual retail investors it seems like it would be tricky to prove malfeasance.