Who manipulated the market in the case of the short squeeze of GameStop

[ygolo]

Some people see those who used the public information about the short interest being more than the shares available and publicly suggested buying the stock, as being market manipulators.

Others say the halting of buying the stock on particular platforms is the real act of manipulation?

What say you?

 

[Red Memories]

They're both manipulating stock. When you buy and sell there's always risk. that's why the stock market is more like gambling and a poor representation of the economy. So I dare to say it manipulates things naturally more to block the app than it is for them to continuously trade a stock.

 

[ceecee]

Some people see those who used the public information about the short interest being more than the shares available and publicly suggested buying the stock, as being market manipulators.

Others say the halting of buying the stock on particular platforms is the real act of manipulation?

What say you?

Rules that apply to one set of investors (retail) and not the other (hedge funds) by the trading platforms or regulators is the real manipulation. Allow it for all or allow it for none.

 

[The Cat]

 

[The Cat]

It's all a grift.

 

[Jaguar]

Transactions which create an artificial price or maintain an artificial price for a tradable security are considered manipulation.


Making up new definitions of market manipulation to suit a political agenda or personal bias holds no weight with me. Anyone with a pair of eyeballs can read the horrible quarterly earnings of Game Stop over a long period of time. The stock price reflected those earnings, as it should. But the stock price that dramatically elevated last week and exists at the current time in no way reflects the company's earnings. To call the current stock price artificial would be an understatement.

GameStop has fallen in nine of the last 10 trading sessions that followed its quarterly reports, according to data compiled by Bloomberg. The stock has lost an average of almost 11% on those days alone. The last two reports were followed by one-day declines of 19% and 15% and the worst was a 36% plunge in June 2019. The only gain was a 2.2% advance in June last year.

All of those stock plummets happened for a reason: Terrible quarterly earnings. To sell a stock short isn't manipulation, it's simply a decision based on sound analysis of the company and perusing quarterly earnings. I bring up the stock's earnings history because it shows how absurd the price action of the stock was last week (up 1000%) and while much lower at this time, it is still artificially maintained - there's no reason for the price to be there. I would liken the stock action to a spinning roulette wheel. Gambling. Which has now replaced sound analysis.

As for Robinhood?

The lawsuits, brought in federal court, allege that the Menlo Park, California-based company breached its contractual obligation as a regulated broker to execute orders promptly and effectively. However, Robinhood is not legally bound to carry out every trade and the lawsuits will not succeed without evidence the company restricted trading for an improper reason, such as to favor certain investors, according to several legal experts.

The user agreement on Robinhood’s website says it “may at any time, in its sole discretion and without prior notice to Me, prohibit or restrict My ability to trade securities.”

Analysis: Robinhood and Reddit protected from lawsuits by user agreement, Congress | Reuters

If one failed to read their user agreement, that's a behavior they might consider changing in the future.

 

[Doctor Cringelord]

Don't be too surprised when the peasants play the baron's game and win. Even if he has an "I can change the rules when it's not fair to me" clause. They still won, and we all know it.

Christ, reminds me of that one kid in the neighborhood who wanted to play cops and robbers with all the other kids, but no matter what, he always insisted beforehand that he had a magic shield to protect him from death.

Fuck that kid. That's exactly why the other kids always ended up ganging up on him until he cried and went home.

 

[Jaguar]

There's multiple ways of making money in a wildly fluctuating market depending on how you place a trade. There's no one to beat. Only yourself.

GameStop retail frenzy ‘is a very poor way to stick it to the man': Interactive Brokers strategist

 

[The Cat]

 

[Jaguar]

Barstool's Dave Portnoy says he lost $700,000 on 'meme stocks' like GameStop and AMC: Robinhood CEO 'stole it from me and should be in jail'

Another guy unwilling to hold himself to account for his own shitty decisions. You have 120 million. Fuck off, Dave.