3 ms·

How and why is that illegal? I am stumped that market participants would not be allowed to correct the capital misallocations of others. Is there any law or ru

• capableweb 5y ago
  > How and why is that illegal? I am stumped that market participants would not be allowed to correct the capital misallocations of others. I don't think (but someone correct me as I'm no professional) the occurrence of short squeezes are illegal, unless there is a knowing collusion behind it (check previous cases from courts regarding collusion to trigger short squeezes). What is illegal is naked shorting (https://www.investopedia.com/terms/r/regsho.asp https://www.investopedia.com/terms/r/regsho.asp) which could be a trigger/condition to future squeezes..
  • pkhamre 5y ago
    Side note; The CEO of Aterian ($ATER) has tweeted about preliminary data of naked shorts and that they hired a third party company to fight this. https://twitter.com/yaniv_sarig/status/1455515851541598208 https://twitter.com/yaniv_sarig/status/1455515851541598208 https://twitter.com/yaniv_sarig/status/1448716392656670722 https://twitter.com/yaniv_sarig/status/1448716392656670722