[khawkins]

Disgusting but not surprising take from the Nasdaq CEO. A few managers with access to billions are able to coordinate their funds because they own them all, but a diverse mob of retail investors couldn't do this up until now because they're all subject to game-theoretic prisoner's dilemma forces.

It's only because so many people are rallying around the ideological worth of the stock that keeps the price from crashing. As the fad dissipates naturally over time, its ideological worth will decline and bring the price down with it. Time is on the side of the hedge funds.

[ineedasername]

I'm not sure the decline will be gradual. Also, prices unsupported by the actual company's fundamentals will now absolutely bring in more shorts, perhaps even the same people that got squeezed on the way up, recouping their losses and maybe profiting at the expense of retailers that wait too long.

[jaycroft]

I think a few hedge fund managers might be about to learn about Schelling points in a very visceral way.