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Both of your first two points - which I actually don't disagree with - fail to address the major and unique problem here. And it is this. There are 6 million
by mancerayder 6y ago
Both of your first two points - which I actually don't disagree with - fail to address the major and unique problem here. And it is this. There are 6 million users on WSB. If you haven't been there (which takes a moment since it is not locked down), you will see stuff like this: a user posts a new post, similar to HN, and they'll maybe post a screenshot of a position with an emoji of diamonds, hands, and rocketships.
Cue thousands of users replying stuff like, "This is the way. To the moon!" with hundreds, sometimes thousands of upvotes.
My question to you is extremely difficult to answer, but it is relevant because old fashioned law enforcement action as you've described aren't so straightforward here: how do you police that?
I suppose someone could use ML to go through the thousands of comments and look for someone saying something like, "There's a short squeeze so let's nab those bastards! Everyone hold!" because those comments do exist, in fact many of them are that. BUT then how would you prevent people talking in code? What if thousands of people just started posting their positions with a thumbs up emoji?
Now my second challenge for you (or anyone who thinks standard SEC protocol is so easily applicable here, open and shut case). What is the difference between a Redditer saying, guys, there's a short squeeze about to happen, buy buy buy! and this:
"Tomorrow am at 11:30 EST Citron will livestream the 5 reasons GameStop $GME buyers at these levels are the suckers at this poker game. Stock back to $20 fast. We understand short interest better than you and will explain. Thank you to viewers for pos feedback on last live tweet
— Citron Research (@CitronResearch)
January 19, 2021"
?
- mike00632 6y agoYou could look for anyone who lied about the short position or spread other misinformation and check if they have a financial interest. These laws aren't unenforceable just because a bunch of people did it on the internet.