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by im3w1l 1526 days ago
I actually think the opposite. Causing a short squeeze is market manipulation. Regulatory agencies let it happen anyway because it was done by random nobodies.
1 comments

If a short squeeze happens that by definition means the shorts were over zealous.

If a market allows shorts it should allow a squeeze as a mechanism of balance.

The market allows short squeezes. SEC too. What the SEC doesn't allow is the deliberate triggering of short squeezes.
I'll believe their not allowing it when their soft gums and limp regulations have teeth again. Fines are a cost of doing business in many cases, unfortunately.