GME: Or, why we shouldn't underestimate “4chan with a Bloomberg terminal”

Re:GME: Or, why we shouldn't underestimate “4chan with a Blo... by perl4ever on Wednesday January 27, 2021 @12:43AM (#25924742)

I put what I thought was the most important point at the beginning of my previous comment.

"Legitimate" and "artificial" seem like undefined words. If one person or a few people puts a value on something that nobody else does, then you can call it artificial. But if millions of people are buying and selling at various prices, how can you prove any of them are "artificial"? To some extent, I think it's simply about numbers. One person who thinks different is crazy. Millions are a political party or religion or something.

They could go after Elon Musk (again), since he gave WSB a shout-out after hours and it jumped like 50%.

[ Parent | on HN ]

Re:GME: Or, why we shouldn't underestimate “4chan with a Blo... by LatteLazy on Wednesday January 27, 2021 @11:57AM (#25930540)

I think that's always the issue with any market manipulation case: how do you know it was manipulated.

To be honest, I have no idea.

There may be a hard mathematical test I'm unaware of. Or it might just come down to convincing the jury. In this case, I'd say that the statements on WSB and the fact the price rose 2 (3?) figures with no change in the underlying company is a pretty strong indication. But it's not a slam dunk, "anything over x% is manipulation" rule AFAIK.

Still, plenty of others are convicted of it, so either juries can be convinced or there is a mathematical rule I'm missing.

[ Parent | on HN ]

Re:GME: Or, why we shouldn't underestimate “4chan with a Blo... by perl4ever on Wednesday January 27, 2021 @06:29PM (#25935643)

It could be that someone is manipulating the stock and WSB at the same time, and they only think they are controlling it.

[ Parent | on HN ]

Re:GME: Or, why we shouldn't underestimate “4chan with a Blo... by LatteLazy on Wednesday January 27, 2021 @07:29PM (#25936368)

That's true, but finra will have a record of who sent the orders, so the SEC etc can trawl through the data and see.

I actually think WSB likely didn't do it completely alone. Plenty of hedge funds watch WSB. RobinHood sells the data too so I'd be surprised if it was a solo effort.

[ Parent | on HN ]