Except it isn't a pump and dump. It is a short squeeze. Hedge fund managers are betting more stocks than the company issued and people are taking advantage of that opportunity.

The closest thing to criminal activity we see here is people betting more than a company's stock. When hedge fund managers see this and buy all the stock to squeeze the shorters it's normal. When it's people like you and me they say it is illegal.

It is a pump in the sense that none of the fundamentals of the company have changed between December and now, the main event has been people buying stock with the express purpose of enabling a short squeeze. Legally, there could be an argument for it being market manipulation.

So nobody should ever buy a stock unless something material, as defined by you, has changed? Not because they think it'll go up in the future?

Sure they can. But coordinating multiple people to do that is a classic pump and dump, and is explicitly illegal.

Where's the coordination? People in subreddits are talking about what they are doing and others are choosing to do the same thing.

No different from somebody on CNBC providing stock picks.

Exactly. CNBC is the biggest market manipulator with a huge mouthpiece. Anytime Cramer mentions a stock in favorable terms it goes up, at least short term. Meanwhile we know that he is friends with hedge funds and at least part of time is probably taking positions before going on TV.

We give that a free pass but suddenly a loosely-organized internet forum is a problem.

There are two major differences...

1. If Cramer said "Hey, let's all buy this stock because there is a potential short squeeze.", then that would be illegal because it's attempting to create an artificial market pump through short squeezing.

2. Cramer is LICENSED to give investment advice. A licensed doctor can go on TV and make medical recommendations. Reddit specifically bans subs that try to do that.

It is the hedge funds that are inflating the stock price because they have to cover their short positions. This is a short squeeze.

It is clear from your comments you have no clue what you're talking about. Stop spreading misinformation.

Read matt levine's twitter: https://twitter.com/matt_levine/status/1354129838806872073

and newsletter if you want to inform yourself.

Pump and hold may not be illegal but it means those people that pumped can’t sell for huge gains.

It's not a short squeeze any more the shorts sold out at a huge loss. Now it's just hot air holding it up.

You’re getting that from news stories and people aren’t buying it. I just looked at TD Ameritrade and it was at 121% of float. Are there newer numbers?

short numbers almost always lag atleast a week from what the average person can see.

Again, it's a "Rules for thee but not for me" situation.

And as it turns out, people are very angry about that. And since violence gets you thrown in jail, the next is financial violence in bankrupting these country-destroying fintech scabs.

And look who comes to their rescue, but not for the masses.

Incorrect. GME is still heavily shorted by hedge funds.

Squeezing a short is different then a pump and dump.

When it succeeds, and the originators of the squeeze don't sell beforehand.

As it was said in previous days: they (the originators of the squeeze) can remain irrational longer, than the other side (hedge fund managers) can remain solvent.

True, but if they sell a massive position and the stock tanks, and a bunch of little guys are left to hold the bag, I could see the SEC definitely investigating it as a pump and dump.

If the bunch of the little guys invested each just few hundred, it is not that a big loss. So if they end up holding the bag, it will be distributed among big crowd, where each member would be missing just a little.

Of course, if someone went above that and invested an amount, where losing it would hurt, that's different.