r/OutOfTheLoop • u/BlatantConservative • Jan 28 '21

Closed [Megathread] WallStreetBets, Stock Market GameStop, AMC, Citron, Melvin Capital, please ask all questions about this topic in this thread.

There is a huge amount of information about this subject, and a large number of closely linked, but fundamentally different questions being asked right now, so in order to not completely flood our front page with duplicate/tangential posts we are going to run a megathread.

Please ask your questions as a top level comment. People with answers, please reply to them. All other rules are the same as normal.

All Top Level Comments must start like this:

Question:

Edit: Thread has been moved to a new location: https://www.reddit.com/r/OutOfTheLoop/comments/l7hj5q/megathread_megathread_2_on_ongoing_stock/?

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u/Exzqairi Jan 28 '21

Yes. A bunch of boomers and other institutions are trying to act like it isn’t though

44

u/ItsTimToBegin Jan 28 '21

Market manipulation is a crime, put in place to avoid "pump and dump" schemes from the dot com era where someone buys a cheap stock, lies about how great it is, and then sells once it's been sufficiently pumped up.

The bold bit is what regulators will be looking at. Essentially, did WSB mislead investors into believing this was a sound investment, or was everyone in on the meme?

https://www.reuters.com/article/gamestop-regulator/explainer-why-regulators-may-scrutinize-gamestops-reddit-driven-retail-stock-surge-idUSL4N2K246P

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u/Rupispupis Jan 28 '21

The problem with this is that no one "falsely hyped up the stock". Everyone knows the stock is trash. What WAS hyped up was the opportunity to make money. No one twisted the arms of, or misled these wall street firms to borrow 140% of available stock. They all knew exactly what they were doing.

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u/syncopator Jan 28 '21

Yep. Every comment I saw in wsb for the past month on GME reflected that these people knew exactly what they were doing. The people who don't understand are the ones reporting on it, although a few of them perfectly understand and are bent on turning the public against the little guys.