>Here's a question though: what happens when the "whale" is really something like an index fund that, ultimately, is composed mostly of retail investors? Aren't

>Here's a question though: what happens when the "whale" is really something like an index fund that, ultimately, is composed mostly of retail investors? Aren't they getting ripped off in that case? Damn right they're getting ripped off. The defense in the OP is essentially "yes, that can happen but it's very rare". Which is about as believable as it sounds.