So what is happening with Gamestop now ?

[theRepublic]

sundin13 said:

numberwang said:

Warren "Poci" doubles down on redditors being "manipulators", gets asked multiple times about reddit and social media specifically and claims that these individuals could be hedge funds themselves (2:20 lol what a twist) and wants them investigated by the SEC for manipulation.

It is very easy, ban "short selling" techniques because it encourages the targeted and intentional destruction of companies through AstroTurf campaigns and other means to benefit from their decline.

https://streamable.com/hu2gsf

I love when I respond to a point that someone says and they come back the next day making the same exact point, responding to nothing. I'll just add briefly about the comment at 2:20, you are misrepresenting what she said. She is not saying that the people on Reddit are hedge funds (although there is likely some degree of astroturf involved here as well), she is saying that Wall St is also participating in buying because...I mean, of course they are.

These moves were made on apps like Robin Hood. How does Robin Hood make money? A good chunk of their money comes from something called Payment for Order Flow. What that means is that they take all of the orders that people make on an app and selling them. That means the buyer can see what is going to happen and make decisions on how to buy/sell on the market in response to that data, before the actual orders are fulfilled. If they see an abnormally high volume of buys in GME, obviously they would jump on that train.

As for your proposed solution, I have seen little evidence to actually back up the assertion that "short selling" is unjustly damaging. Lots of people like to say "shorting bad" but I've yet to see someone provide actual evidence. In my opinion, the changes that should actually be made, are first of all banning Payment for Order Flow. It tilts the market by giving Wall St advance knowledge of market moves, which shouldn't be allowed. Second, we need to do exactly what Warren is suggesting and give the SEC more power to investigate market manipulation and more clearly defining what market manipulation is.

At the very least, shorting more than 100% of available stocks should be illegal.