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by systemvoltage 1934 days ago
I disagree with classism take on GME and other meme stocks. If anything else, it’s the opposite. The common person is being manipulated and the hedge funds and major personalities on these social media are raking in.

It’s the biggest misconception of this entire meme stock phenomenon.

2 comments

I totally disagree. The whole market sold off both times GME squeezed, then popped back as GME receded. Bonds did the same this week. I could be wrong, but this tells me that people on the short side had to liquidate positions in order to maintain margin. I don't know any retail investors who can move the ten year. The fact that PFOF brokerages are the ones that halted buying tells you something about the nature of the buyers.
Of the retail participants with a position in the shares, what percent of the total positioning do you think is on the long side versus the short side?

Of the short positions, what percent do you believe are from retail traders?

That's the line of questioning that you have to answer for yourself. Might help if you stopped using hyperlinks as a surrogate for reasoning.

The original question still stands. If the issue of hedge funds shorting GME above 100% is true and (theoretically) hedge funds can pump as they like because they have the capital capacity and act as one entity, how can you regulate it?

It's not so much different that people banding together to pump a stock.

EDIT: I don't defend GME, imo it is a pump and dump. But how can SEC can regulate equally for this specific issue?

“Pumping” in the context of pump and dump is not buying, it is exhorting other people to buy. It is a form of fraud where person A lies to person B in order to extract money from them.