Okay, sure, so then block the entire stock for a while. What they did was block one side. They blocked people from buying but only allowed selling. Imagine all the market sells after that tanking the price.

In fairness, you can close out your positions if you are long or short. If you are shorting the stock, you are allowed to buy to close the position.

Right, I went long by buying to close my short leg on spreads, holding the long leg.

You keep posting this in every possible thread.

Question: who got punished for the VW short squeeze? That was illegal too, right?

The thing is, I think I know what you’re trying to say, but you’re not explaining it well enough, and are spreading (at best) misinformation.

A short squeeze isn’t illegal.

Organising a coordinated one might be.

The VW wasn't a planned squeeze. It just happened because Porsche was actively taking a stake in the company. Porsche didn't buy the stock with the intention of selling it to make a profit, they literally tried to buy the company to trigger a asset transfer clause.

It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it.

In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.

Short squeezes are not illegal, stop spreading misinformation.

> a short squeeze is illegal

No it's not

You keep posting this, but do you have any evidence? Other people have repeatedly refuted short squeezes being illegal.