SEC needs to shut down WSB and indict the instigators

longshort said:
Ample opportunity for the SEC to act. Fits the letter of the law and its intention perfectly.

View attachment 250095

It's all documented in the press how the Fed-enabled scum on Reddit conspired with the expressly stated goal to manufacture a short squeeze by excessively driving up the price of a specific stock shorted by a specific fund. They even succeeded in doing just that.
https://www.institutionalinvestor.c...n-Reddit-the-Seeds-of-Melvin-Capital-s-Crisis

Below a slide directly from the SEC.
View attachment 250096

Full disclaimer: I don't trade single names or their derivatives and have no interest in entities that do.
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None of those would stand. All WSB board did was just expressing their opinions. They can say whatever they want and whether you buy or sell is your choice. Nowhere have they ever forced anyone in any shape or form to buy or sell any security. For the same amount of people who bought $GME, same amount of people sold $GME as well at the same time. Manipulation would be making you trade in a security in one direction and one direction only i.e. pump & dump penny stocks where those boiler-room firms made everybody buy the stock only whereas in this case, you are free to sell the stock too and plenty of people did. So that's not manipulation by the longest stretch of things.

Expressing one's opinion just talking about a stock is NOT manipulation. LOL They better not listen to those vulture lawyers to try to sue cuz this will be thrown out of court in no time after fattening the pockets of those vulture lawyers and wasting taxpayers money. Now that those WSB boys have gotten money, they will be able to hire the best lawyer(s) in town to defend them.
 
Look at a GME 1 minute chart of any day since this all began and you will see up trends and down trends and many overnight gaps. Up, down, up, down.

Like today for instance - opened @ 265 traded up to 483 then down to 112.25 and finally closing @ 197.44 (RTH).

Other than much larger daily ranges and much more volatility I'd say it was every man for himself.

Note I only trade futures so no skin off my back either way.

But good luck making a market manipulation case. Think Ghouliani is available these days - for his going rate of 20 g's a day.
 
longshort said:
You're reading it wrong.

It really doesn't have to apply to placing false/pretend trades. The section intro is a prerequisite for all that follows, okay. But then each of the numbers like (1) or (2) or (3) are distinct alternatives. One is enough.

Within (2) the only thing resembling your "false/pretend trades" is in "creating actual or apparent active trading". These are again alternatives, as in actual or apparent.
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I can’t be reading wrong something that isn’t written, while the only thing that was written and that I quoted from your own screenshot is about placing actual trades. Even you’re unable to quote the actual sentence where whatever you think is prohibited is written in black and white. Instead of quoting what exactly isn’t permitted, you’re only speculating and talking fluff about things that don’t exist and aren’t written anywhere, just like some retards on Reddit. What specifically in your document states whatever it is that isn’t permitted, besides placing physical orders with intent of misleading others.​
 
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ktm said:
Of course she did. And AOC and all the others... oh the humanity!!!!

Because those folks on the Hill need to kill off another month of sound bites and virtue signaling and endless hearings about yet another topic that is anything but working for the people of the country in some meaningful way. And in the end nothing changes.

They want to act like Robin Hood was somehow acting in cahoots... with who exactly? Nothing changes because these brokers not only need to protect themselves, but their customers - from themselves. You've read about the people on reddit asking what an option is or how shorting works - guess what - these guys have Robin Hood accounts. If Robin Hood did nothing and a few of these retail pikers blew out their accounts and wound up negative 6 figures due to a halt, those same congressmen would demand hearings wanting to know "why Robin Hood didn't protect the little guy" from big evil Wall St. and those terrible hedge funds.
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Robinhood was reported to have drawn hundreds of millions in a line of credit with banks. My guess is their retail traders blew their accounts and they were on the hook for the losses. That would explain why they would not allow their clients to buy more stock of GME and AMC knowing full well the stock is bound to drop like a rock. More losses, they would end up eating a lot of it. Most of these ignorant traders were rejoicing over having stuck it to hedge funds, just yesterday, now probably, losing huge sums of monies on top of owing more monies due to margin calls due to their huge losses from trading GME and AMC.
 
longshort said:
Communication is in the beginning of what I emphasised ("by the use of the mails or any means/instrumentality of interstate commerce"). A legal term that includes any interstate communication.


Obviously there's more to manipulation than just "discussing which stocks to buy". The entire WSB subreddit was and is obsessed with effecting transactions to raise the price of certain stocks in order to induce a short squeeze = purchase of such security by others (Melvin). And they succeeded.

Here's what the case law typically requires and I think it all took place there: (1) The accused had an ability to influence market prices; (2) the accused specifically intended to create or effect a price or price trend that does not reflect legitimate forces of supply and demand; (3) an artificial price existed; and (4) the accused caused the artificial price.


Did you bother to have even just a brief look at what you defend? WSB is a disgraceful amalgam of foul language, complaints about Robinhood, and apparently illegal market manipulating pump-and-dump schemes. Below is a small selection, all copied verbatim:

GME Squeeze and the Demise of Melvin Capital (submitted 3 months ago)
GME Gang vs. Melvin Capital (submitted 1 month ago)
Melvin's losing money on its GME puts. Let's get it over $24 retards! (submitted 1 month ago)
Melvin vs WSB! Place your bets retards... GME to the MOON!!! (submitted 28 days ago)
Melvin Capital - GME Put Positions (submitted 15 days ago)
$GME /r/wallstreetbets vs Melvin Capital (submitted 14 days ago)
Fuck Melvin Capital (submitted 14 days ago)
Melvin Capital shorting GME (submitted 13 days ago)
GME going to the moon, melvin capital gets nutted on (submitted 12 days ago)
FUCK MELVIN CAPITAL (submitted 12 days ago by)
Bought in yesterday and averaged up today. Fuk Melvin Let’s ride (submitted 12 days ago)
Yolo update: EAT THIS MELVIN (submitted 6 days ago)
Melvin is bleeding in the billions. Position: 100% all-in GME shares on a cash account. (submitted 2 days ago)
Buy the dip! Fuck Melvin. $BB $GME to the moon (submitted 1 day)
Missed GME and Still Want to Fuck Melvin? Buy $BBBY (submitted 1 day ago)
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You are a fucking idiot and have no clue what is actually going on.

WSB was talking about GME long before your little copy and paste. Particularly one guy put out solid DD about his opinion on a bullrun. He was LAUGHED at in the sub. It wasnt until recently that people started hopping on because he was posting his gains as it went up.

It snowballed from there. That isnt manipulation. People talking about stocks they like and why they are buying is not manipulation. No more than your barber telling you about his portfolio while you get your fucking horseshoe shaped. Those copy and pastes are from when the "work" was already done and at that point just adding fuel to the fire. By that time, the cat was out of the bag. When people started piling on, is when more information about SI came out.

ANd where in your fucking drugged up mind do you think its good risk management to be in an equity that is short 140%? Whose fault is that? Is that retails fault because they caught them with their pants down and then told their friends to look at the big bad HF with his ass showing?

WSB is no different than Cramer going on his show, saying why he thinks a stock is going down, and telling people to "sell, sell, sell." In fact, Cramer can be seen as actually manipulative rather than WSB.

Not to mention the BS RH pulled that is obviously shady.

Andrew Left, dat you? Good luck trying to prosecute people who bought the stock because they like the stock. Next time, dont over-short a stock because you think nothing is going to happen to you.
 
So how is a flash mob of buyers, with the expressed intent of a short squeeze, like a pump and dump bucket shop, and how is it different?

It seems they are both fomenting a market, yet most of the flash mob money doing the buying probably never posted on social media and are just doing a momentum bet. Prosecute the starters of a particular thread on WSB? Isn't that suppression of free speech?
 
Excuse me for laughing hysterically at the hypocrisy I see in this.

Bill Ackman appears on CNBC on March 17, 2020 raging about the end of times - and by March 23rd pockets $2.6 Billion on his hype.

Hedge Fund Managers have been hyping their shorts for decades.

Mind you, none of this is productive for society - its just another way for the moneyed Wall Street Elites to rig the system in order to obscenely enrich themselves.

But somehow NOW its time to jail some Reddit thread shlubs?

Oh please.
 
Basically if big funds sell stocks THEY DON'T HAVE to intentionally cause a stock crash, it is legal business.
If people want to buy a stock as they think it is undervalued and will go higher, it is a criminal act if it hits the financial interest of the funds?

The real story is: what funds do is always legal. If small investors annoy big funds, they are criminals.
These markets and rules are tailor made for the funds.
 
I'm seeing some parallels to the story of Navinder Sarao here who was evicted for market manipulation and spoofing. Seems like it's only a problem if a private individual does it. Less so if it's an institution.
 
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