29 upvotes, 4 direct replies (showing 4)
Can it really be manipulation if nobody has lied and everything is organized in public? I am genuinely wondering about that, like when does it go from smart investing to manipulation.
Comment by [deleted] at 27/01/2021 at 05:18 UTC
3 upvotes, 0 direct replies
On another forum I heard about the idea floated of an "honest pump-and-dump": since the explicit goals of the participants in this (open, decentralized) scheme are more like "wheee stonks go brrrrr" than "let's use deception for profit" the underlying legal elements are there for manipulation, but not for criminality.
Comment by lilspaghettiboi at 27/01/2021 at 03:54 UTC
2 upvotes, 0 direct replies
there are several types of market manipulation that don't require those, but most of them are reliant on it. Things like insider trading, churning and market cornering don't really require direct lying
Comment by grubas at 27/01/2021 at 03:49 UTC
3 upvotes, 1 direct replies
The issue is if it's "bad" manipulation or not. Running around on the internet screaming at people to hold and buy is market manipulation. This is however many self admitted ding dongs on the internet, which isn't a corporation or group of companies.
So the goal is to pump the stock, openly. But it's crowd sourced, so it's legal.
Comment by [deleted] at 27/01/2021 at 03:50 UTC
3 upvotes, 1 direct replies
I seem to recall a minor getting into a similar boat (alleged market manipulation through internet posts) and his defense was the same thing as what's happening here, you're only going after me because I'm a small player. They specifically brought up the type of unpunished corporate manipulation WSB is talking about now.