Chris Haroun breaks down the GameStop squeeze of January 2021, when the stock rose 29.4 times over. The SEC considered investigating retail investors for manipulation, though Haroun pins the surge on hedge fund short positions. A $7.2 million compensation clip shows the financial incentive behind market abuse.
Away. I should. But then again, what's the point of having screw you money if you never say screw you?
Now In January of 2021 the price of GameStop went up 29.4 times. And this caused the SEC to consider at some point looking at retail investors when it comes to market manipulation. Now to be fair and objective, I think it was mainly the hedge fund shortcoming that of course caused GameStop to rise materially. Also from a pump and dump perspective, if someone were to write something false on a website which causes a stock to go up or down a lot, then this too would be market manipulation. And the government now has very sophisticated AI based algorithms that can detect market manipulation even if a crooked investor does not document the reason for their trade.
What's your level of certainty? I am not uncertain.
Now what is also illegal is what's called wash trading which means buying and selling the same stock repeatedly in order to pretend that a stock has high liquidity. Now why do some crooked hedge funds get tempted to manipulate stocks? It's because of the unbelievable temptation of compensation as shown in this clip.
7.2 million. 7.2 million. Feel that.
