It is a near certainty that hedge funds fleeced retail investors who bought GME above $100/share. The real problem with WSB is not the people who post there, i

It is a near certainty that hedge funds fleeced retail investors who bought GME above $100/share. The real problem with WSB is not the people who post there, it is the large crowd of unsophisticated lurkers who overestimate their own knowledge and abilities. The media did not help by hyping this story and making it sound like "Wall St." was terrified by a mob of Redditors. Two hedge funds lost some money, but as many have pointed out, those funds will probably still turn a profit on the year. Meanwhile, a bunch of hedge funds, algos, and prop traders are raking in cash from the spike in volatility, and a bunch of HFTs took advantage of the spike in volume. I expect a small bump in sports car and yacht sales in the NYC region as a bunch of "Wall St. bros" spend the giant bonuses they are taking home from this whole episode. As to the scam aspect, I give it a 50/50 chance that someone saw an opportunity to pump-and-dump some symbols with very high short interest. I doubt it was a hedge fund, it was probably an individual, probably someone living outside the reach of US law enforcement. The alternative is that a bunch of idiots actually came up with the idea that they could take on "Wall St." and managed to trigger a short squeeze, many of whom have yet to realize that the party's over.