That's the same argument for regular sports betting or any other type of gambling. But this is not just people making poor decisions, this is more than that. A lot of unknowing or innocent people getting sucked into something they don't know what they're getting into. It's the same reason smoking, alcohol, etc are all prohibited to minors, and gambling in general is illegal outside of specific locations - because people make poor decisions and ruin their lives when it's readily available.why would it be even borderline illegal? can't blame robinhood for people who make poor decisions.
is any of this illegal though? as far as i know there has been no private info released and all is based on whatever news was out there about the stock.
It's not completely unlike a pump and dump scheme, where someone buys shares of a stock regardless of its merits to create a bit of movement up, then starts pumping others to buy because it's going up, and it feeds on itself, and then the pumpers dump the stock near the peak and inevitably it falls back down and all but the earliest investors take a loss.I don’t see how any of it is illegal. If anything a stock being shorted 140% should be illegal.
or better yet - don't buy/invest in companies that have no value, no worth, no reason for their stock price going up. stick with solid companies. don't get greedy. you can make a killing on good companies too if you choose wisely.There is rarely such an easy target for this scheme.
The pandemic has some businesses that are technically viable but completely destroyed by the pandemic. They have low market caps, so you don't really need get crazy volume to make this take off. They have high short volume because bankruptcy seems to be looming. They have been beaten down for a long time, so everyone who still owns these shares (prior to squeeze) are institutional or insider and likely won't be selling at the first sign of a surge (as would happen with most stocks, halting the squeeze) so buyers outnumber sellers by far, driving up price, amplified by the fact that these buyers are buying without considering the fundamental value of the asset so they will pay anything. Add that to the shorts who are forced to buy, and there is nothing stopping the price.
DONT BUY AFTER THE SQUEEZE HAS STARTED. YOU WILL BECOME THE VICTIM, LIKELY.
FWIW - official twitter for wallstreetbets said its not shutdown. the mods were overwhelmed and temporarily locked the subreddit. seems consistent with the tweet mgarbowski posted.I honestly couldn't say if this is indeed a lie.
It’s like when our forums first opened up and we dealt with CFG fan boys non stop. But worse.I honestly couldn't say if this is indeed a lie.
I do miss TypicalCityIt’s like when our forums first opened up and we dealt with CFG fan boys non stop. But worse.
So they’ve been periodically shutting down to prune the Reddit.
Discord’s reasoning is hate speech and it’sa cop out but not exactly wrong. They (the WSB people) refer to new members as ‘retards’ and regularly use derogatory slurs for humor.
I’m sure that played a part in their ban but was likely also a way out to cover their own ass from a SEC investigation.