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by AndrewBissell 2171 days ago
> They're going to heavily investigate everyone that made a half million on a super high volume, widely shorted stock in a time of extreme volatility?

These arguments all seem to be operating on the assumption that there would be a large number of day/swing traders who would exit their positions with perfect timing, but this is unlikely because they wouldn't have the knowledge that the price move was ephemeral and driven by a false rumor. The number of people who made a half million off it would be a lot smaller than you think.

2 comments

Anyone with out-of-the-money options which suddenly became in-the-money would tend to sell.
You don't need perfect timing, and there will generally be a lot of traders who think "lol this is insane, I'll just cash out".