Yeah but the reason companies are able to raise as much money with stock issuance is the promise of liquidity thus providing liquidity is valuable. This exampl

Yeah but the reason companies are able to raise as much money with stock issuance is the promise of liquidity thus providing liquidity is valuable. This example isn't a problem either. Someone made 700k at the cost of someone else, likely an over-leveraged players who were forced to liquidate because of the threat of the pandemic. The market is far from efficient and the swings in prices are unavoidable. Normal long term investors didn't lose much if anything during this crash. The government got a cut because of money changing hands. If anything one could ask why is the government getting anything if no value was created.