[westurner]

> Or, large investment banking houses will step in and create naked shorting opportunities to inflate sell pressure creating 'death spirals' to drive prices down and scoop them up and extreme discounts. This happens in the traditional public markets everyday.

Is there a term for this?

[KasianFranks]

Yes, this can happen in a few different ways and is the reason why Ycombinator created SAFEs. When you have a public company you will get offers for what are called "credit lines", "debt financing" or "convertible notes". They are traditionally used to create death spirals https://www.investopedia.com/ask/answers/06/deathspiralbond.... as the size of your float increases by you, executive director (CEO/CFO), as a public company "issuing" more stock to cover the loan. The more you issue, the less you're worth until somebody comes along scoops you up and re-engineers the cap table which is a restructuring. However, manipulation can occur within institutions as well: https://news.ycombinator.com/threads?id=KasianFranks&next=14...