[capableweb]

> How and why is that illegal? I am stumped that market participants would not be allowed to correct the capital misallocations of others.

I don't think (but someone correct me as I'm no professional) the occurrence of short squeezes are illegal, unless there is a knowing collusion behind it (check previous cases from courts regarding collusion to trigger short squeezes). What is illegal is naked shorting (https://www.investopedia.com/terms/r/regsho.asp) which could be a trigger/condition to future squeezes..

[pkhamre]

Side note; The CEO of Aterian ($ATER) has tweeted about preliminary data of naked shorts and that they hired a third party company to fight this.

https://twitter.com/yaniv_sarig/status/1455515851541598208

https://twitter.com/yaniv_sarig/status/1448716392656670722