Illegal Trading on GameStop? or WallStreetBets: The Stonkening

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Did the hedge funds illegally manipulate the market? Did the redditors of Wallstreet Bets? STONKS
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Sorry, occupational hazard: This is not legal advice, nor can I give you legal advice. I AM NOT YOUR LAWYER. Sorry! Everything here is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Nothing here should be construed to form an attorney-client relationship. Also, some of the links in this post may be affiliate links, meaning, at no cost to you, I will earn a small commission if you click through and make a purchase. But if you click, it really helps me make more of these videos! All non-licensed clips used for fair use commentary, criticism, and educational purposes. See Hosseinzadeh v. Klein, 276 F.Supp.3d 34 (S.D.N.Y. 2017); Equals Three, LLC v. Jukin Media, Inc., 139 F. Supp. 3d 1094 (C.D. Cal. 2015).
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[@LegalEagle]

📉 GameStop stock is plummeting. HODL? ☎️ Get $25 off of your first month with Ting Mobile legaleagle.link/ting

[@LegalEagle]

On Nebula, I went on an extended rant about how the stock was surely going to plummet. And then on release day, it did!

[@nolansmith5184]

@@LegalEagle you are clearly a profit and I will start a religion around you

[@ApplePi1]

@@nolansmith5184 obviously, that's how people stay alive

[@gavincassells7585]

@@LegalEagle Is the video on Nebula? I haven't been able to find it.

[@locosiap4184]

I appluade you for telling the truth about melving covering thier positions on GME but I expect a lot off redditors will get mad at you since that dose not fit with thier narrative

[@SilverKnight16]

Part of me wishes that this could see its way to court, only to hear someone who spent god knows how many years slaving away at law school have to actually say phrases like, "Meme stocks," and, "For the lols," in front of a judge. You know, for the lols and all that. But this video will have to do.

[@fyraltari1889]

Well, you can always take confort in the knowledge hear someone who spent god knows how many years slaving away at law school had to actually say phrases like "omegaverse" and explain the concept of fanfiction to a judge.

[@enyotheios2613]

I had a brother in law that was a defense attorney who would drop rap rhymes in the courtroom. Most lawyers know they've sold their soul, but are chill and relaxed about it. Who knows when you might appreciate them getting you out of community service.

[@arne0107]

I wouldn't be surprised if either have already appeared on the record somewhere. A Magistrate Judge from C.D. Cal. once issued a recommendation with Taylor Swift lyrics that included a footnote describing what a "meme" is.

[@bonononchev634]

I also wish to win the lottery.

[@AStrangeTree]

“Your honor, it would seem that the intentions of users of Wall Street bets such as u/THICC_CHICS_DM_ME were ‘rocket emoji to the moon,’ ‘we like the stock,’ and often they demonstrate a motivation to demonstrate ‘diamond hands.’”

[@danrich6448]

If Senators can dump airline stock a couple days before announcing a Covid travel ban, we're all good here.

[@anelisajustanelisa236]

Literally...

[@dielaughing73]

Haha THEY'RE all good maybe, doesn't mean the same applies to you and me

[@Enterprise1701J]

The action is illegal. Senators however have their stonewalls and people in place.

[@jameslape8656]

That's why anyone who supposed to know stuff or like business themself there supposed to have prewritten stock trading at sertin times. Now whether they actually fallow that I dont know

[@billcipher826]

@Karl Marx *SOVIET ATHEM PLAYS*

[@Reavyr]

My favourite thing from all this is "Use the free market to get rich!" "But not like that!!"

[@TriggerHappyRC1]

What I learned from this: 1) Everything is market manipulation. 2) You have to prove intent for it to be illegal - good luck. 3) The brokers are above the law because they write their own laws.

[@beetlejuice3x309]

This needs more thumbs up.

[@russianbigbird4161]

Number 1 and number 3 are very true. It's funny how laws are put in place under the guise of regulation and balance and yet the scales are always tipped by the people with all the money

[@nlhn638]

For 3, I would ask if they really are, because in many Western countries, contracts or agreements that contain illegal acts are illegal, and thus anyone signing that is essentially signing a contract saying "this is not a real contract". In other words, if the contract itself is illegal, it has no meaning in court. [This isn't legal advice.]

[@wouldiwasshookspeared4087]

For number 3, it's more that they're above the law because of the limitations of the SEC, they can only fine you so much, so if you have more money than that, it's just the cost to do that thing.

[@stellaluna6421]

And whether or not they literally write their laws, they can still preserve their hegemony over market trading because their actions are considered socially "legitimate" by virtue of establishment

[@Doomroar]

His ability to not hit that lamp with his hands is astounding.

[@vrinnmetagen]

My heart race with ever hand wave.

[@connordt604]

Never noticed before, can't stop looking now.

[@catarinahenriques2011]

😂😂👏🏼

[@tiffanysandmeier4753]

Is he that close to that lamp or is it perspective?

[@winterwyverm1880]

Comes from years of legal school

[@Penfold101]

“Well, that’s day one of law school done - what have you learnt?” “Well, it depends.” “Congratulations - here’s your law degree.”

[@CreativityNull]

It's a paradox. The law degree depends on whether or not you have a law degree.

[@Mr1und2]

this also make you a age of empires 2 pro

[@finallightning7]

You left out the part about who has the stronger argument

[@Aya_Brea1998]

But what about the lawsuits against Robin Hood for stopping people from buying GME & AMC?

[@Mr1und2]

@@Aya_Brea1998 well they will argue self preservation to not go bancrupt, people nearly bancrupted robin hood with this.

[@TheRezignator]

"A lot of people on Reddit really like Gamestop as a company." I never thought Id hear someone say those words.

[@JimboRustles]

A lot of people also just like making money. At least the OG /r/wsb members did before the subreddit got overtaken by what is now basically a financial suicide cult.

[@tuckertooley174]

not as a company but gamers would be lying if at one point they looked at the store

[@christinagurchinoff1517]

Definitely old school. My boys are 80s babies and they are huge fans.

[@KO-tq3ns]

no no one likes them, gamesstop was just the best target

[@ccloak]

It would otherwise be strange for people to say they like to keep the stocks of a company they do not actually like.

[@kosviik9584]

2020: The economy is falling apart!!! :'( 2021: The economy is falling apart!!! :'D

[@cefirodewinter9086]

Weeb, go back to play Nobushi

[@Xeraghusta]

2020: The economy is dying and we need to help it 2021: The economy is dying and we are causing it

[@mustachio2]

@@Xeraghusta Dying *

[@Xeraghusta]

@@mustachio2 thanks, problem fixed

[@ginkowave5829]

Shut up clan kid

[@techmouse.]

"Do you take this woman, for better, for worse, for richer, for poorer, in sickness and in health?" "It depends."

[@hariodinio]

"Does she prefer a deep pan pizza over a thin crust?"

[@krh6239]

A lawyer's wedding vow

[@BilingualHobo]

In sickness* and in health? *sickness does not include any venereal diseases that were not pre-existing at the time of the wedding.

[@PinataOblongata]

"Better, richer and health, please, thanks for giving me those options"

[@Braiam]

@@krh6239 An economist's wedding vow.

[@cupofcait]

Every time he says Game Stop stock you can feel the urge to just say Gamestonk

[@williamjohnson9599]

I do a bong hit every time he says it

[@cupofcait]

@@williamjohnson9599 enjoy your trip! Lol

[@jaytomson3492]

I kind of hope they would rebrand their name to Game Stonk just to usher in their new era of e-commerce.

[@amazingentertainment9636]

@@cupofcait hes gonna get so high he'll reach the moon before gamestonk

[@sameash3153]

Game stonks

[@seanburke997]

Hi, fellow attorney here. You failed to address one of the fundamental problems with barring class action lawsuits via arbitration agreements - Without the ability to join plaintiffs as a class, it is possible for malefactors of great wealth to defraud many (even millions) of people of very small individual amounts each. Steal $50 from a million people and you have made $50 million dollars, yet no single one of those people has an amount at issue that would provide any attorney with a potential recovery to attract their services. Without legal representation, plaintiffs are very unlikely to pursue or obtain recovery given the costs, time commitment, and complexity of arbitration, particularly in matters as complex as financial regulation. Sincerely, a guy who has represented plaintiffs in FINRA arbitration.

[@alamaric5534]

Those "forced" arbitration clauses should be against the law. The concept that in order to use the service a company has you can not sue them. The company after all picks the arbiter so you can see where this goes.

[@starsword-c2534]

There have been bills entered in Congress to that effect following the Epic Systems SCROTUS decision but they all died because the banks own the Republicans.

[@rabid123fox]

I don't necessarily have an issue with the arbitration clause, arbitration is generally a cheaper alternative and quicker alternative to actual court. its more of the "no class actions allowed" rule/stipulation that i believe is much more nefarious

[@RWAsur]

Schrödinger's Stock Market (n) *definition:* every trade and participant is engaging in legal and illegal actions at the same time

[@petertrudelljr]

And the very act of interacting with the stock market collapses the wave function and the stock goes up or down.

[@hazukichanx408]

The entire market is nothing but manipulation. Talk to any stock trader and they'll tell you whatever they stand to gain from you believing, actively deceiving you as part of the ordinary course of their business. Any supply and demand mechanics that may once have guided an economy become secondary to the eternal rat race of a liars' battle royale.

[@lawyitkazuki5768]

Which is a sign that the entire thing needs an overhaul lol

[@mim8312]

Cute but no, it is the hedge funds and brokers who are engaging in fraud and dismissing that reality is enabling them.

[@happyfase]

It's also engaging in just legal, or just illegal, or neither legal or illegal actions at the same time.

[@Scania114AzulGelo]

2020 was crazy, hope 2021 comes to heal everything... 2021: MONEY IS AN ARTIFICIAL CONSTRUCT AND HAS NO MEANING!!!!

[@dashiellgillingham4579]

The majority of US dollars in circulation were produced in the year 2020, if we didn't see money suddenly start going crazy right off the bat something'd be fundamentally wrong with economics as we know it.

[@juanfranciscovillarroelthu6876]

money only exist because we believe it does.

[@reddawn1873]

Soviet theme starts playing Lenin Stalin Mao and Karl begin to rise from their graves The Revolution has come

[@Sykoze]

So what you're saying is, your dreams came true and 2021 is here to heal everything.

[@Sykoze]

@@reddawn1873 Marx based, leave the rest in their graves

[@trisjack82]

They didn’t stop all trading they stopped all BUYING

[@tardigrade8019]

and also said it wasnt as a result of liquidity issues

[@SinnerD2010]

Oh, so just market manipulation.

[@blindeagleace3629]

I mean, Robinhood had to. They were tapping their credit lines just to keep the platform running. They didn't have enough capital to keep going with all this high volume. Stocks don't just come out of nowhere.

[@bobross4729]

@@blindeagleace3629 If people buy stock they give Robinhood money. If people sell stock they take money out of Robinhood. If Robinhood was having capital problems then why did they forbid people from buying, but allowed selling? It would make sense to halt all selling AND buying, or to halt selling, but to halt _only_ buying while claiming not to have enough cash sounds disingenuous.

[@blindeagleace3629]

@@bobross4729 Not unless they are on margin, and even if people used their own cash it would still take two to four days for the order to be completed from the clearing house. And Robinhood would still have to put up collateral to hold the order. It's a horrible idea for Robinhood to stop Buying and Selling because that would only affect Robinhood users. Robinhood is just one broker site. Meaning if they halt all trading then that wouldn't stop users from say WeBull or Sofi from trading. If a Robinhood user brought GME at 300 and Robinhood halted trading and the price went down then Robinhood users would have been destroyed. Again, Robinhood didn't have enough capital to keep up with all the trading going on. They had to take 700 million dollars from their credit line to continue trading on the site. I know it's not popular to say but Robinhood did the right thing by restricting trading on those "meme" stocks.

[@nicholasprickett3131]

The argument that I feel could be made with the RobinHood legality debacle could be made is that they actively manipulated the stock even if unintentionally. The company as a whole did not allow people to buy stocks in select companies BUT did however allow (or in some alleged cases forced) people to sell their stakes in the company which will only permit the value of the stock to go down.

[@xtampa9236]

I think the SEC needs to rethink the freedom they give to these brokerages to manipulate stock prices at their own discretion. Imagine a major stock exchange telling a hedge fund that the stock is too volatile so they can only sell their positions. The whole thing is crazy.

[@youcancallmemaurice]

They violated rule 5310. They were already fined for another set of violations of this rule so it's likely happening again. The SEC had every reason to initiate a trading halt since the market was clearly impacted by at least one of not two brokerage firms liquidity crises. They chose not to for whatever reason but that is the proximate cause of the problem. The SEC failed to act when it should have and thus we have this debacle

[@TwoTreesStudio]

As a matter of legal fact, you can't unintentionally manipulate the market.

[@TwoTreesStudio]

@@xtampa9236 You can think all you like. But unless you're willing to spend more cash on securities laws than robinhood's hundreds of thousands of dollars per year, the SEC will continue to work for them, not us.

[@rodrigojds]

@Aleksa Kole I'm pretty sure any EULA is gone over by legal entities to make sure no laws are broken.

[@tigress1699]

I choked on water when he said "members" and the screen highlighted "degenerates" for the subreddit member count lmao

[@dielaughing73]

Smooth brains

[@laurencefraser]

Apparently it's what they call themselves, so...

[@dubstepistheonlygod]

Names can be apes, retards, and smooth brains

[@danielkirienko1701]

Clearly you've never been to /r/web. They call each other a lot worse than degenerates. In many ways, it is the unholy spawn of a Wall Street market analysis room and 4chan, with all the crude humor and childish excess of each.

[@SVINT6]

"if 4chan found a Bloomberg terminal" what do u expect 😭😭😅😅

[@EphemeralTao]

It's all perfectly fine and legal until rich people start losing money.

[@Josh-ck9bv]

More like it gets swept under the rug as long as the powerful make money. It’s not legal by any means but no one takes notice. And that doesn’t even have to be because they are bias to the rich, it could just be because for a poor person to make this level of impact on the stock they would need to group with tons of people

[@robbietorkelsonn8509]

you do realize how that is? the rich are the rich because they make the rules

[@kerrystromire6384]

Some rich people are still making plenty of money out of this and they will have little sympathy for those on the losing side of the betting. GME is essentially arena fodder to make a bit of a spectacle.

[@everythingisfine9988]

You've summed up the great short squeeze in one sentence 👍

[@isaarunarom7830]

So everyone in my family myself included (I'm 30 with full time job) are broke AF. Our retirementment plans are getting ruined by this, my 83yr old grandfather a retired truck driver is considering going back to work after all he has lost. Rich people are going to be just fine after all this gamestop crap. Poor people gonna end up cold and hungry becuase of it. People who don't make enough money but have carefully invested for years to survive into old age( he makes more in retirement due to investments than he ever did driving cross country) have lost more where it counts. Like I hate gamestop very much, but its horrifying seeing whats happening becuase of it

[@Vanlifecrisis]

When they short a stock they dont just hope it goes down, they launch a media campaign to talk down the stock. See Jim Cramer. They also launch ladder attacks to simulate a drop to cause a panic sell off.

[@clairavoyant1212]

I don't know why the first "STONKS" sent me into a giggling fit

[@AbderrahmanFodili]

Warren Buffett: only invest in what you understand Gamers in reddit: understandable , have a nice day

[@johnspencer5820]

They just like the stock.

[@Roeclean]

@@johnspencer5820 stong go ZOOOOOOMMM

[@goodough]

Yap just like the stock.... bunch of crazy Gorillas with diamond 💎 hands 🙌🏻

[@chinaforcedorganharvest-me7062]

It's a "FREE" market, the reason why stock increase or decrease in most companies because people either LIKE or HATE the stock, nothing more to it.

[@tardigrade8019]

Your honor, I understand 2 things. Tendies are the best, and GME go brrrrr

[@thewave1983]

2020: I'm a bizarre and terrible year. 2021: Hold my stonk.

[@derekallgood9496]

💎🤲

[@folou9199]

Concentrated bombardment?

[@MMuraseofSandvich]

USA: OK, 2021, we're still dealing with the 'rona, you gave us an attempted coup, and now trolls causing chaos on Wall Street. I think that's enough sh*ts and giggles.

[@C12omega]

you damn right

[@mathiasm8489]

Hedge fund have always been manipulating the market so why are they now crying?

[@skeletonbuyingpealts7134]

They want themselves and only themselves to be rich.

[@michaelmcdoesntexist8350]

They're crying because a lot of them used the VERY DANGEROUS uncovered call on what they thought was a safe bet and sunk quite a bit into it. Then, when they got, "You fool"-ed it ended up costing them a lot. So, they cry.

[@alien2393]

hedge fund and people who do it are holding humanity back

[@Teixas666]

they got outplayed at their own game and got a bitter taste of what they do the smaller traders. basically the " everyone should trade....wait not like that?!"

[@korruptedpineapple6096]

Yo Legal Eagle! It's been a year since this video. Have you seen the information released by the congressional finance committee formed to investigate this saga? Ken Griffin of Citadel told this committee he "absolutely [did] not" communicate with Robinhood other brokers that turned off GME. The committee later released a report showing Citadel definitely talked to Robinhood. Did he lie under oath? Why isn't he arrested?

[@bumblehoney7206]

I wish this comment was getting more attention

[@h8GW]

Imma do my part to pump the marke-.....algorithm.

[@arturoaguilar6002]

I don't think one is under oath when talking to the committee.

[@darthsmokester4759]

KZbin algorithm bot post... update and follow please

[@thecrazycapmaster]

@@arturoaguilar6002unfortunately you’re correct, congressional committees don’t operate with the level of authority or structure of a court of law, much like how impeachment proceedings operate. 😅

[@baronvonbeandip]

"Giving dynamite to children is fun to watch." -LegalEagle

[@jonasdatlas4668]

I mean, the analogy isn’t far off... though I do agree the result is immensely fun to watch.

[@LegalEagle]

I speak truth to power.

[@Nick-nx1df]

@@LegalEagle the absolute madlad

[@nullcandyy]

@@LegalEagle yes

[@niall_sanderson]

@@LegalEagle In this case, the power is a violent exothermic reaction

[@HanMasho]

Legal Eagle: "It depends." Me: "Oh yeah! Talk nuance to me."

[@sdaniaal]

Seems like he has a vested interest in this affair so I can't really tell if this is accurate, especially since robbinhood have been making doubious statements and have shown negligence through their actions.

[@Elluem]

He's actually a liar. What he didn't tell you was that Robinhood didn't stop trading for GME. They only stopped your ability to buy it while still allowing you to sell it.

[@MarkHWillson]

@@Elluem It was brief, but he actually mentioned that at about the 8 minute mark. fwiw I think he is *mostly* correct here, but omitting some very important details that ppl should know about if they have any desire to prevent something like this from ever happening again.

[@johncreighton844]

@@sdaniaal counsel, would you kindly explain what is it that seems, exactly? Don't just cast aspersions or innuendo. By the way, what is that climbin' out yer window?

[@MrXander1337]

"This might lead some people to believe the market is rigged and unfair because..." lemme finish that for you in the correct way..because it is..

[@TwoTreesStudio]

But if he admits the by-businesses-for-businesses "market" and "economy" things are actually just thinly-veiled scams against the public, he won't be able to go work for the finance industry after retiring from youtube! Gotta keep those options open!

[@donb7519]

@@TwoTreesStudio im guessing when he retires for youtube he wont need to since he already has all the money he needs from his practice which probably pays way more than youtube does

[@tifforo1]

US financial markets are heavily regulated, even moreso after Dodd Frank, to the point that even companies worth hundreds of millions of dollars sometimes don't want to go public for fear of increased regulation.

[@chiddy786]

After watching many of these I'm still surprised by US law. In Australia you can't sign away your consumer rights. And our consumer rights are extensive. So things like forcing arbitration would be deemed an illegal practice and be ignored in any legal proceedings. I can't tell if the US has poor consumer rights or they are just can be easily superceded.

[@duetopersonalreasonsaaaaaa]

Imo moreso easily superceded. I feel like we have good protections so long as you don't sign those 'you can't sue us' things... but they're everywhere, with almost anything you use. I'm not sure how one would be able to eat, drink, or sleep anywhere without signing one.

[@canuckguy0313]

“It’s like giving dynamite to children: it might cause a huge amount of damage but it’s definitely going to be fun to watch.” I don’t care that Devin is a successful lawyer I am SO stealing this.

[@glenngriffon8032]

it worked for the Adams family.

[@lairdcummings9092]

Fiscal chaos for fun and profit! (i.e. business as usual, with new players)

[@anastasiab8173]

Such stupidity. A parent wouldn't give dynamite to kids, so why didn't Robinhood adjust their margins instead of stopping buying.

[@angadsingh9314]

@Karl Marx Chill bro

[@lairdcummings9092]

@@anastasiab8173 Robinhood CEO got a 3am call to deposit $3Bn to cover deposits on trades. I daresay he shit himself more than just a little - that was a bigger bill than Robinhood's *entire* capitalization. Yes, he managed to get that talked down by half, but that's still a scary-ass (literal) wake-up call. I can see why he panicked.

[@BrimSt0ne28]

"Your honor, it was just for shits and giggles"

[@spartan8705]

WE JUST LIKE THE STOCK

[@artyombychkov2134]

for shidding and gigging

[@supergamergrill7734]

It was just a prank bro.

[@acecranker1]

@@spartan8705 👐💎🚀

[@yeshnavale]

"Your honour, mario will never be ballin'"

[@dominickbrock9849]

The sad part is that when the big guys purposefully screw over the little guy through increased mortgage costs, which, and correct me if I'm wrong, led to the housing crisis, they receive massive bailouts. Yet, when the little guy does the same exact thing, it is suddenly very bad.

[@emberthecatgirl8796]

I’d argue that the cultural value of Game Stop is a factor in it’s stock price. A company that fostered a loyal clientbase, a clientbase that has just reached the age to possibly have surplus income. These ties to videogame culture are a part of value as much as older banks having more renown - and thus trust put in them.

[@perciusmandate]

It's hard to take the crying of the hedge funds seriously when you realize they have so many golden parachutes stacked up that no amount of short squeezing will ever really ruin them. They're literally too rich to become poor.

[@Jame5man]

I also doesn’t help their cases when a lot of them took out short positions before the 2008 recession and were celebrating their financial windfall as hundreds of thousands of people lost their jobs and homes. You don’t exactly win sympathy for that

[@MeesyIce]

Are you actually so naive as to believe that the people who benefited the most out of this were regular people and not just other hedge funds ?

[@roberteskew7320]

@@Jame5man correction.. millions...

[@ChipsMcClive]

@@MeesyIce Well, damn! I wish the other HFs would help squeeze the shorts!

[@ceoatcrystalsoft4942]

Not quite. There are winners and losers always, and especially so in a Big Squeeze

[@Angie-Pants]

"Stonks" has destroyed my temporal lobe; all I could hear was GameStomp and Blonkbuster.

[@Garl_Vinland]

Gamedomp

[@alexs6746]

Bonkbuster

[@TheBiggreenpig]

26:00 He said Meme Stonks. It wasn't my hearing.

[@JoshuaBenitezNewOrleans]

Thank you for making me laugh

[@davidr2421]

Goin greenk with alternatul fuels

[@bgakjldvs]

@7:30 they didn't stop trading, just buying. You could still sell which is direct market manipulation

[@jimmybuck1993]

Im starting to realize everything is illegal from the right point of view.

[@kaelin_cherise]

Law is a game of semantics to begin with

[@DisDatK9]

Especially if “non-professionals” do it. Cop kills in rightful self-defense? Perfectly fine, immune to any lawsuits brought. Civilian kills in self defense? If not found guilty of murder, they’ll get sued for everything they have. Same for Wall Street, the “non-professionals” bought stock and disrupted the hedge’s strategy, so it’s illegal.

[@pandoratheclay]

It’s illegal because the government and hedge funds don’t like it

[@carschmn]

This whole situation is hilarious. Somewhere there’s the saddest song playing on the world’s smallest violin for the hedge funds.

[@twotgfltandahalf]

Jig or a Reel?

[@Lowmanification]

And all of the people who bought late last week. It's fun to imagine that only the rich will get hurt by this, but a LOT of small investors are going down with them. The worst part about it all is that the rich will get bailed out.

[@andreicecold4379]

...and for universities, and credit unions, and for people who live off of pensions (I.E. veterans, etc.)

[@filipwolffs]

@@Lowmanification Maybe if this process repeats itself a couple of times it will make it increasingly obvious to everyone that the system is rigged to protect the rich and that this whole idea of a fair free market where everyone has a fair chance is a lie propagated by the rich to protect their wealth and keep the public pacified.

[@LamentedGore]

@@andreicecold4379 yeah, catch me not caring. Shout out to oil stock prices and thanks for keeping it low. Nothing else.

[@palehorse6655]

"Melvin Capital ONLY has 12 billion dollars" that statement makes me tired and sad

[@aaronwinegar9724]

Even a tiny mom and pop shop that earns the couple $30,000 a year will regularly do over a million a year in business. Having a few billions in working money isn't that much. Working money is very different than profit.

[@zyrohnmng]

Hedge funds usually charge (steriotypically) 2 and 20. 2% on the assets controlled + 20% on profits earned. This varies widely, typically depending on how good the hedge fund is. So, if they manage to match the average market growth (7%), they'd make an average profit (assuming their fees are 2 and 20) of $408m annually. The exact fees for them, i'm not certain. this year though, they're not making much money :P

[@harrywood6502]

eveythings relative

[@crazycjk]

They lost 3.5 billion in January though, so maybe that will make you feel better?

[@BAgodmode]

The number of billions is of no concern to my guillotine. Please sir, my poor guillotine, it is thirsty.

[@AnonymousAlcoholic772]

Im so happy you let people know that in MOST small claims cases, arbitration is definitely in the users favor. Ive seen arbitration clauses that say every expense after the 200$ initiation fee is borne out by the defendant, win or lose. For most issues for 2000$ or less, threaten to initiate arbitration and a company will fold like a cheap suit.

[@jesbensommichael8397]

After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

[@georgerobinson2021]

Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor

[@jesbensommichael8397]

@@georgerobinson2021 In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.

[@georgerobinson2021]

@@jesbensommichael8397 Please provide the information for your investment advisor here. I really need it now.

[@jesbensommichael8397]

@@georgerobinson2021 She is MARTHA ALONSO HARA, my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.

[@georgerobinson2021]

@@jesbensommichael8397 sincerely thank you I looked her up on the internet and was awestruck by how qualified she was; I contacted her since I need all the help I can get with canning. I've just scheduled a call.

[@brettmajeske3525]

Objection: Those who used other platforms than Robinhood could file a class action lawsuit. They did not sign any user agreements, but the Robinhood restriction directly effected Gamestop prices.

[@solitarelee6200]

Oh damn that's a very interesting position and I would like to subscribe to your newsletter

[@TheSmiddy]

@@marcoscolon5348 no he's saying that users of other platforms can sue Robinhood for market manipulation

[@genth3575]

Not really: by that logic an investor in GameStop should be able to sue Valve Software.

[@itsaUSBline]

@@genth3575 an investor in GameStop can sue Valve. Not really sure what you meant by that, the logic of your statement actually supports what he said.

[@marcoscolon5348]

@@TheSmiddy oh ok. Sorry.

[@LiiMuRi]

"If you can't take a beating, don't short stocks" -Someone somewhere

[@ozfresh]

i believe Warren Buffet said something along those lines

[@jays2551]

_something has a potential for literally unlimited losses far exceeding anything you've actually invested_ hedge funds: i see no downsides here

[@notatrollll]

Question. How is short selling stocks as a large hedge fund in large quantities not market manipulation or violate antitrust? By mass selling they are lowering the prices as well. So what is wrong with people mass buying?

[@surferdude4487]

If I could, I'd give you 100 likes for that comment.

[@jcramberry]

@@notatrollll there's nothing wrong with mass buying or mass selling. What's illegal is buying or selling purely for the purpose of convincing others to buy or sell. In these situations trades are analogous to the calls dispensing fraudulent information.

[@akiraakiraakiraakira]

it's near impossible to figure out the "intent" of an internet stranger

[@DannyChilders]

“Closed their short position” ...short report comes out * 78% still shorted....

[@JDLaney-zk4wb]

I wish I was this early at buying GameStop stock.

[@alanheyes694]

Right!

[@olgacalvache3327]

kdksksks SAME

[@brendanmarsch9290]

A friend of mine found out he had actually been following DFV on KZbin for months and never realized he was trying to hype up Gamestop

[@-._._._-_._._.-]

I had an order to buy 65 shares at $20, ended up putting the money elsewhere. Not my best investment choice.

[@thepenguin9]

I wish I was this early buying Bitcoin

[@johntaylor7029]

"Everyone wants to sue each other" Lawyers across the land: : D

[@guywithdacap4713]

"It's free real estate!"

[@aterriblefuze9540]

@@guywithdacap4713 *stonks*

[@heyitsnemo]

You get a lawyer, you get a lawyer, everyone gets a lawyer!!

[@sholahverassa8582]

"They think it's hedge funds that control the economy, mwahaha"

[@Seethenhagen]

Legal fees only go up!

[@blueststar4u]

I can survive losing, but id rather die than miss out.

[@mattmike7140]

Did you hear that quote from somewhere?

[@rjstegbauer]

OBJECTION: I always wondered if the "forced arbitration" clauses were actually enforceable. It seems to me that *every* contract and agreement has that provision, which to me, means that it really wasn't negotiated.

[@AshofApocalypse]

A large amount of serotonin entered my brain when I read “the stonkening”

[@Paveway-chan]

Finance & market manipulation in media: **hackerman** Finance & market ”manipulation” IRL: **internet going YOLO**

[@wiwersewindemer4437]

Sant

[@charlesku4308]

dogecoin set for another pump

[@ignitionfrn2223]

0:45 - Chapter 1 - Gamestop investors 4:40 - Chapter 2 - Shorting a stock 8:20 - Chapter 3 - Is this illegal ? 8:55 - Chapter 4 - Market manipulation 11:00 - Chapter 5 - Pump & dump 14:20 - Chapter 6 - Intent 16:15 - Chapter 7 - Who's manipulating who ? 18:00 - Chapter 8 - Collusion between hedge funds & robinhood 21:35 - Chapter 9 - Contracts 101 22:00 - Chapter 10 - Arbitration 23:55 - Chapter 11 - Restrictions on trading 26:05 - Mid roll ads

[@neversinkmakes]

Let’s not confuse consumer arbitration (meant to avoid class actions) with “arbitration” as a whole. Lots of large companies choose to arbitrate disputes (and particularly international ones) instead of submitting them to a court.

[@notablegoat]

"Melvin Capital only had 12 billion dollars to begin with" aw the poor, poor babies

[@LeetMasterAce]

I caught this too and thought: "ONLY!?"

[@moyayaille2609]

The intention was probably to empathize that the 3 billion injection was a lot

[@junjunjamore7735]

Wish I had that problem.

[@MagiconIce]

In the world of Hedgefunds, it is probably really "only" 12 billions, that other hedgefunds are way richer. Hence other, bigger hedgefunds could aford to just give some billions away to protect Melvin Capital.

[@yaci7945]

Bridgewater has like 100 billion

[@garthmarenghi9040]

The real stonks were the memes we made along the way. Like that sea shanty they came up with.

[@literalsarcasm1830]

YAAAAARRRR!

[@arkesh110]

Link?

[@roo2dee2]

@@arkesh110 look up the tendieman to the tune of the wellerman

[@garthmarenghi9040]

@@arkesh110 kzbin.info/www/bejne/Y2S2p32sg5Wrb9U

[@sirapple589]

“There once was a stock that put to sea the name of the stock was $GME The price blew up and the shorts dipped down Hold my bully boys, hold”

[@egg3228]

If there's anything I’m learning from all of this mess is, I’m just learning more and more how stocks work and investing in general.

[@jonathanvillegasvilches2298]

I've lost track of how many episodes I have watched of this. Really glad Dr.Mike did that recent video with you, now you have a new subscriber and a daily viewer!

[@Roxfall]

Food for thought: people who held GME and AMC stock at the time when Robinhood restricted trading lost money due to Robinhood's actions. Not all of these people were Robinhood customers, and did not sign the Robinhood's EULA. That means they have a better chance of getting their cases into a court.

[@goldfishprime]

What would their argument be? "This company that allowed the stock to skyrocket it the way it did, prevented its users from trading during a volatile time, so I lost money?" Don't think that will fly.

[@JewTube001]

@@goldfishprime yeah it's way too indirect. neither was the intent to stop anyone else from making money.

[@michaelbarbarich3965]

@@goldfishprime my Nokia position that I had been building since Nov lost 25% because it had been placed on the naughty stock list. For what reason? It's not a terribly volatile stock, is it because it happened to also be popular on that subreddit?

[@goldfishprime]

​@@michaelbarbarich3965 One would have to look at the numbers and changes during that frenzy period. Did Nokia's value increase suddenly like with GME? Was Nokia being shorted? And you said subreddit, so was it popular with the group that was trying to ride the gravy train? Are you blaming them or Robinhood?

[@ThePolice2012]

@@goldfishprime "The company that allowed the stock to skyrocket'" I don't think you have any idea what ur talking about. Brokers shouldn't have any influence on a stock's price. That would be market manipulation.

[@matthewstone7218]

LegalEagle uses "giving dynamite to children" as a metaphor Also LegalEagle "it's definitely going to be fun to watch"

[@OMalleyTheMaggot]

Well... Adult Children lmao

[@matthewbadley5063]

Fun for the whole family

[@draconisxc]

You saying you wouldn't? Liar.

[@rjfaber1991]

To be fair, dynamite is actually remarkably hard to accidentally set off. That's part of the reason it became such a succesful explosive; it was much safer than the alternatives available at the time.

[@blinkin304]

@@rjfaber1991 unless it gets too old and starts sweating nitroglycerine. then all that is required to set it off is an impact.

[@jb9652]

LegalEagle, I'm very pleased to have found you today. Top quality comprehensive concise information! Essential to have all this information before taking action of any sort.

[@keeleywinters6381]

Alright so, because I was bored and his was lamp fluctuating in intensity of light (don't know why I noticed it), I wrote down the timestamps of when Legal Eagles' lamp (somewhat) rapidly changed in intensity. Here's the timestamps ± 2 seconds: 0:13, 1:28, 2:13, 2:34, 2:38, 3:11, 3:39, 3:50, 4:09, 4:14, 4:21, 4:35, 5:07, 5:13, 5:15, 5:19, 5:24, 5:36, 5:56, 6:05, 6:12, 6:23, 7:42, 7:45, 8:05, 8:25, 8:34, 8:44, 8:46, 9:31, 9:35, 9:47, 10:03, 10:43, 11:34, 11:43, 12:15, 13:05, 14:05, 14:22, 14:36, 16:50, 23:37 (many slow fluctuations between the last two (2) listed timestamps), 25:09, 25:13, 25:16, 25:17, 25:33, 26:51.

[@nathancurrie9563]

I noticed and appreciate your effort

[@Gnarfledarf]

I appreciate this.

[@Gnarfledarf]

I appreciate this.

[@Galeigh]

At this point you should be selling merch with "It Depends" stamped on it

[@erikk77]

The adult diaper company would send a cease and desist letter :)

[@oNovais]

A mug with “milk or coffe? It depends!”

[@erikk77]

@cak01vej It's a joke.

[@adammartin6347]

This makes sense if you can sue “reddit” or “r/wallstreetbets” but each individual redditor did not have the power to influence the price substantially enough to meet part (1) of the market manipulation test.

[@solitarelee6200]

Yeah, I kind of agree. The real challenge here would genuinely be figuring out who in god's name to sue. Individually they didn't have the power to do shit, and they all had their own reasons for acting as they did. Maybe one person wanted to manipulate the market, but that doesn't mean the other 8000 guys did, and without those other 8000 guys, it wouldn't have happened, and can you really make the argument that one random guy saying "hell yeah, stonks" is powerful enough to manipulate the market. It becomes a messy circle that you could argue around in circles forever in. Unfortunately, a lot of times what lawsuits actually mean is "the guy who can afford court wins," which means regardless of if reddit user boobs69 actually committed a crime, just being charged with something could ruin his life.

[@andrew_ray]

And how on earth do you differentiate between people who bought GameStop to "screw the hedge funds" and people who said, "oh, shoot, looks like there's a conspiracy to artificially inflate the price of this stock and I think I can make me some money off this."

[@julkiewicz]

@@andrew_ray You can differentiate for instance by reading what those people write online. Those that use language carefully don't have anything to fear. But those that make careless statements may have a problem. Probably still not, but theoretically could. As to the influence that a single person has. Again, if there was a careless post that had very many reactions and that clearly was read many times, this could serve as an argument. The fact that there were many thousands posting certainly is not a defence in itself. Otherwise, it would be possible to engage in any kind of market manipulation using a large group because each person individually wouldn't matter.

[@neolexiousneolexian6079]

@@andrew_ray That's gonna set a terrifying standard for plausible deniability, though. Imagine if all you had to do to get away with most crimes was organically spread out culpability for the effects across enough people.

[@andrew_ray]

@@neolexiousneolexian6079 What's the difference between "plausible deniability" and "reasonable doubt?" Honestly, I'd be more concerned by the contrary precedent whereby anyone who can be connected to a crime is automatically considered guilty. I think if the hedge funds sue anyone, it's just going to be a handful of prominent Redditors who made the initial posts who set things in motion rather than try the individual guilt (and therefore the specific _intent_) of each person who purchased GameStop stock.

[@canucklehead1937]

Like we actually enforce the anti-trust act anymore

[@pandoratheclay]

Someone get the Necronomicon, Teddy’s coming back

[@rustyshackleford2223]

I love how much understanding you have. Keep up the good work!

[@ccricers]

Can the name “Robin Hood” get any more ironic?

[@sorartificial]

No-thingham

[@rvanzo925]

Robin Hood is a thief. What do you expect form a Thief? And in the story Robin Hoof steals from the government (sheriff) to give back to those who created the wealth.

[@maj.romuloortiz7832]

@@rvanzo925 Robbing The Hood*

[@tardigrade8019]

@@rvanzo925 seems like reddit was using the app as intended then :^)

[@stensoft]

Taking from the rich, giving to the poor. When GME price increased, Redditors became rich and hedge funds poor. I think it is an apt name then :)

[@lodamaupo]

"Rules for Thee, But Not for Me"

[@kennystimpson2775]

Tim Pool?

[@ajw5138]

The rules were the same for everyone lol This is just a bunch of people throwing money at a stock because of memes and then blaming everyone but themselves when they lose money. You lost money because you invested in something that already rose many thousand percent.

[@Kilo_Alpha_Delta]

@@ajw5138 The platform that allowed them to access the "free" market locked them out thus forcing them to lose money. This isn't a lost bet. This is a rigging the system to screw over retail investors. Plain and simple. Robinhood should burn in hell for it.

[@ajw5138]

@@Kilo_Alpha_Delta Just because you don't understand something doesn't make it rigged. Brokers/entire stock exchanges limit trading during times of extreme volatility all the time. Robinhood still allowed them to sell if they wanted and them limiting buying because of liquidity issues is in no way manipulation. People bought the top of a bubble and are now crying and trying to blame everyone but themselves.

[@cy20998]

@@Kilo_Alpha_Delta they could have sold, so no, also ironically this would be true if they couldn't sell

[@ncjedi]

Great video! One of the best explanations of the event, well explained from both sides' perspectives.

[@PolarPhantom]

"It's not our economy. It never was." ~ Jim Stephanie Sterling.

[@faffywhosmilesatdeath5953]

Legal Eagle: Professional legal analysis Also Legal Eagle: *S T O N K S* Edit: Oh wow I didn't expect to come back to nearly 600 likes. Since this is popular please drink some water and get some sleep.

[@gromaxe]

I see this as an absolute win

[@artscience3453]

The duality of man

[@samanthaleshikar9025]

I'm so glad he made this.

[@TheNecropolis20]

$GME Bid: 91.10 Ask: 92.00 Last: 91.50

[@TheNecropolis20]

$GME Bid: 89.51 Ask: 89.87 Last: 89.80

[@margothutton]

Is anyone else on the edge of their seat waiting for the fatal moment his gesticulating finally smacks that lamp across the room?

[@sophierobinson2738]

M.G.L. Hutton I keep trying to get a good look at his hands, because his voice is like the LockPickingLawyer's.

[@petertrudelljr]

I was fascinated by how the light from the lamp was changing colors.

[@petertrudelljr]

When MGL Hutton speaks... people listen.

[@AmericanGirlGymnasts]

I think he may be infront of a green screen so it may just be a photo

[@WhitneyHaverstock]

Ooh. NOW I am. 🤔

[@YouthRightsRadical]

It seems to me that the only reason events like this do not provoke violence is that people do not understand the law, and thus falsely assume there is a legal remedy for the injustices they are facing. I wonder how wise it is in the long term to keep making it so blatant that there is no such remedy.

[@dallinburk5858]

Very informative. Thanks for explaining something so complicated in such a great way!

[@Iceman-135]

Now that T-rump is gone, its actually becoming fun to see you take on these whimsical events, instead of dedicating 4 videos in a week to some add-to-the-pile crazy stuff. I liked this!

[@meowtherainbowx4163]

As important as those videos were, it got very tiresome very quickly through no fault of his own.

[@stevenn1940]

@@meowtherainbowx4163 it's refreshing to not have to think "oh god, what's going to happen this week?"

[@GaussianEntity]

@@stevenn1940 Now we have to think "Oh God, what's going to happen this week?" but with other things

[@Dylan-hb5zr]

Or maybe it's that LegalEagle, like everyone else, has a political Bias. Biden has signed 43, yes, 43 Executive orders in just his first Two weeks in office. It took Trump months to get to that level. If Devin wanted to, he could talk about the Legality of ending the Keystone XL pipeline through an executive order (thereby laying off thousands of well paying Union jobs) or allowing boys to play in girls Sports. But guess what? He's not gonna cover that stuff, Because that doesn't fit his narrative. I hate both presidents. I just sincerely doubt Devin is gonna look into any of Biden's shenanagians. I would love to be proven wrong here.

[@GaussianEntity]

@@Dylan-hb5zr It seems like you're complaining about literally nothing. Maybe try turning your brain on and off again to make the problem go away.

[@override367]

Why is it not market manipulation when Jim Cramer and a bunch of talking heads on CNBC talk up a stock or insist it be held that they have a financial stake in increasing

[@ttww1590]

The well practised avoidance of key phrases and the inclusion of key info. In 2020 many on WSB were sticking to the same guidelines, or going comedicly the other way as to claim jest. Many of the unwashed masses who started arrive late 202 and in 2021 are new to trading and unaware or uncaring of any possible issues or liabilities tied to statements they make or guidance they give.

[@dylangolden30]

A lot of those guys refrain or are forbidden from trading in the market for that reason

[@EroticInferno]

They “play by the rules,” that they wrote, that enable them to benefit without it looking immoral :)

[@angeljaceherondale]

Privilege

[@Adamdidit]

@@dylangolden30 wait hang on..this is new info to me so if you dont actually trade or buy or own yourself.....what rules are you exempt form here?

[@The_Story_Of_Us]

One thing’s for sure, Eminem could make a hell of a rap on stopping stock trading on gamestop stock

[@tabchanzero8229]

10:00 Laws against market manipulation are almost as old as the market itself. "In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds." (Wikipedia)

[@PinataOblongata]

"Giving dynamite to children is definitely going to be fun to watch." - Devin, 2021

[@justyourlocalbernana1823]

I died when I read this ROFL

[@Nazareadain]

BROTHER! I'm so happy we can share this mutual appreciation!

[@kotori87gaming89]

I do love me some explosions :D

[@The-Big-Boss]

We here at legal eagle do not condone child violence we do however, find it hilarious

[@pallasathena1555]

Can’t lose fingers if you have 💎 🙌

[@imjeremy51]

What about all the media saying Reddit is now "targeting silver?" Even though there wasn't a single upvoted post about silver on the forum. This is false information used specifically with the intent of manipulating investors. Melvin has big long positions on silver, directly profiting from it. Also, Citidel a major person in a short position on game stop, is a major investor in robinhood.... pretty convenient. Seems like a lot of manipulation to me.

[@soangry]

The qanon types have been hyping silver. Of course you wouldn't hear about it because it's entirely different circles.I only know because of moles on Gab that relay the dumb things they say.

[@Monjipour]

To me this is the most striking example of market manipulation in this whole affair The ability to influence the market is clear for media, and they are supposed to be subject to fact checking which they apparently forgone during this affair It's either diffamatory to say that r/waalstreetbets is buying silver or it's market manipulation I bet they won't even be taken up on it though

[@eugeneoliveros5814]

@@Monjipour do not fall for the silver bs, that is bad and an attempt to draw away attention from the whole Gamestonks thing

[@imjeremy51]

@Phi6er this is why net Neutrality is important.

[@GhostGlitch.]

@Phi6er that's tor/the darknet. It exists

[@PrettyGuardian]

The only stonks I've ever played are selling turnips in Animal Crossing.

[@hivaladeen4892]

The great Turnip Bubble

[@Happyhenzo]

I would love to see you look into this further with all the new information we've gotten. Especially naked shorting

[@HarbingerH]

"All animals are equal, but some animals are more equal than others."

[@jasonco2441]

George orwell animal farm chapter 10

[@bored_person]

Ironically, that book was a commentary on communism.

[@insertcognomen]

@@bored_person it's convergent evolution...eventually all systems tend toward a rigged system of haves and have nots

[@bored_person]

@@insertcognomen that's an incredibly difficult claim to verify.

[@neolexiousneolexian6079]

@@bored_person Not really, at least empirically. Just look up graphs of income inequality over time in a diverse sample of systems.

[@sarysa]

*2040s teacher:* In the '20's, stock traders buying on margin triggered an economic collapse due to being unable to pay their debts en masse. *2040s student:* Which '20's? *2040s teacher:* Yes.

[@trueriver1950]

So true

[@draugur345]

The Game Stop traders weren't primarily buying on margin. They were given government funny money and they turned it into a handful of shares of Game Stop. Most people weren't buying tens of thousands of dollars worth of $GME, on margin or off, there were just a million of the beautiful bastards

[@dcsii]

@@draugur345 government funny money.... Some of the bigger investers from reddit put in 6 figure sums as an individual. Specifically it was over $700,000 that they turned into 13.8 million. Considering the US has given people 1800 total over ten months. Compare that to about anywhere else nearly as industrialized as the US has given that amount to people monthly on a recurring basis.

[@tacokoneko]

all fiat money is government funny money, cryptocurrency with real scarcity like gold such as bitcoin is real money

[@sarysa]

@@tacokoneko Gold and Bitcoin aren't comparable. Gold has natural supply increases of something like 2% a year from mining, while Bitcoin already crossed below that and will continue to decline in added supply. Further supply losses just from people losing their keys makes them different animals entirely. One can argue the merits and pitfalls of both, but what isn't arguable: People are far more motivated to hoard Bitcoin than gold, and hoarding weakens something's viability as a currency.

[@jordanlamp5050]

This channel is some of the best content on the internet as a whole.

[@JohnSmith-ii3cu]

This situation proves several things true: Many people do things without understanding them, especially when it comes to finances. Many people sign up for things without reading the agreement or contract that comes with it.

[@Money4Nothing]

The hedge funds announcing intention to short, is just as manipulative as redditors announcing their intention to buy. Both actions are an attempt at influence. If short positions were secret, then a moral high ground might exist. But it doesn't. Short sellers blatantly and intentionally execute their actions in direct attempt to tank a company's stock to make money.

[@TheNicolombiano77]

You do know there are even bigger hedge funds that are long on GME right?

[@angadsingh9314]

There is no way to prove that. Since they do not explicitly announce what they hope to achieve with these announcements. MEANWHILE, r/WSB proudly announces that its intention is to manipulate the market.

[@Reydriel]

Which is why I see short selling as inherently unethical imo. Then again, a lot of shit these guys do in finance often are. But there is nothing unethical about the simple act of buying stock hoping it goes up in price.

[@angadsingh9314]

@@Reydriel Thoughts and hopes are never 'unethical'

[@TheNicolombiano77]

@@Reydriel nothing unethical about seeing a weak stock you think is gonna go down in price and betting on that

[@jth_printed_designs]

Its not a pump and dump if the whole intent is to never dump.

[@joshuagrant5227]

Finally someone gets it. Finally! They are not inflating stock to profit off of the inflation, they are willing to just hold the stock so it can’t be purchased and are willing to not only not capitalise off the profit but willing to lose all their investment. I mean...They are most entitled to sell stock they’ve purchased and earned profit...that’s what stock trading is. But they’re not doing that and it’s truly bizarre to try and claim even in the fictitious world where a group buying stock cheap together and selling it when it’s high, is illegal....you’d have to actually wait for them to sell the stock first to cry foul

[@coleschemistrychannel4172]

@@joshuagrant5227 It doesn’t necessarily need to be a pump and dump to be market manipulation. Successfully and deliberately influencing the price of a security for private purposes (as happened here) is considered to be market manipulation

[@joshuagrant5227]

@@coleschemistrychannel4172 So a hedgefund in essence comes TO YOU selling stock so you buy it, then they expect to buy it back from you at a cheaper rate than they sold it to you for in say a weeks time. That’s totally fine somehow. If their plan works, they knowingly deceived you of its value when selling it. And that’s totally fine? But apparently the purchaser not selling something you purchased from the seller back to the selller and the time the seller demands and at the price of initial sale or cheaper than the initial sale prices, that’s apparently illegal and market manipulation. I can go right now and buy 40% of a dog food company’s stock if I want providing the stock are up for sale. My reasoning can be for ownership, for an investment on the secondary market, to simply waste spare money I have which is my damn right and also...spite. Yes I can buy out of spite.

[@marcellkovacs5452]

It's a pump scheme

[@beeble2003]

@@joshuagrant5227 Short-selling isn't deception. Any time any stock is bought or sold, long or short, it is because the two parties have different opinions about it: the seller thinks it's "bad" and wants to sell; the buyer thinks it's "good" and wants to buy. Suppose Alice wants to buy some stock because she thinks it will increase in value. Bob sells the stock and she buys it. Alice was right and, some time later, she sells the stock at a profit. Did she deceive Bob? No -- they just disagreed about the stock's trajectory and Alice was right. Short-selling is just the same thing but the other way around. Alice thinks the stock will fall in value so she takes a short position.

[@williamklemp3764]

"Yeah, I cant tell you, but nothing's changed", as the camera pans into the bottom half of the Verizon logo

[@michaelallen1432]

This is a real problem that we have these days. Companies write a user agreement or a contract that states. Essentially, "we can do anything we want. No matter how egregious to you". Then they get you to sign up essentially with the promise. "While we could do anything we want, don't worry. We won't" then at some point in time they actually do do pretty much anything they want and when people complain. "No one in there right? Mind would have signed up for your service. If they knew you were going to do something like that" they point to the user agreement and say "hey. We can do anything that we want. You agreed to it.."

[@hozz1014]

Your catch phrase is, "I'll see you in court." but it should be, "Will I see you in court? Well, that depends."

[@rebeccasirrine947]

Reminds me of an old rhyme from the wild and woolly days of Wall Street: "He who sells what isn't his'n Buys it back...or goes to prison."

[@Sewblon]

That is exactly what my dad said about this.

[@gwillis01]

Thank you for that wonderful turn of phrase

[@hazukichanx408]

Ha ha. Rich people going to prison in the US. Good one!

[@fladder1]

So what about those guys with huge short positions always giving interviews on why they have sorted a company so much? Isn't that market manipulation?

[@sandysimpbait1085]

Can't wait for the follow up video explaining the issues (margin accounts that shouldnt be margin accounts) that robinhood clients have with transferring accounts to other brokers.

[@jedinxf7]

I can't believe I haven't heard it called The Stonkening yet. that's so clearly the right name for it

[@NimonoSolenze]

I've actually heard it called that already! I believe it was trending on Twitter at one point.

[@soren7550]

Eh, just wait for the inevitable Internet Historian video on it. It’ll likely be called that.

[@Sw33tum]

"It depends" need to be made into an Ancient Aliens style meme. The Meta potential is unlimited.

[@robby2867]

I just can't get over the fact that billion dollar hedge funds publicly shorted a stock isn't "market manipulation"

[@robby2867]

"of course the market is regulated" ... Wow, just wow I really lost a lot of respect for him on that one. That's the kind of wide-eyed optimism and belief in the marketplace that should have died off in 2008

[@LuganWanian]

this

[@MrSkeltal268]

@@robby2867 it’s not that shorting itself was manipulation IMO, but shorting over 140% is essentially saying “We’re trying to destroy your business” because nothing less than the company going belly up would satisfy shorting to that magnitude.

[@robby2867]

I didn't mean to put these under someone else's comment lol my bad

[@green6676]

i'd really love to see a video going into a little depth about what can and cannot be included in those terms and conditions contracts, like to what crazy kinds of conditions could companies put in those contracts, if they really wanted to; Like, could they claim my soul or does it have to be of a certain relevancy to the service?

[@thegreenxeno9430]

Your videos are incredibly informative and clear-thought.

[@00bean00]

On this topic I'm not sure he has enough of the background info that was explained in the original threads. But you know, controversial topics make money

[@CP1871]

Plot twist: nothing is legal. We'll all see each other in court.

[@remiscott9843]

I object! Everyone doesn't have standing to seek damages under color of law, if there is no law!

[@laramiejensen5710]

"Melvin Capital only had 12 billion to start" Aww, poor bastards... ONLY 12 billion? 💎👐🦀🦀🦀

[@Adamdidit]

compared to other hedge funds it is only thats the scary part

[@JamieLannyster]

@@Adamdidit or other asset managers. BlackRock has 8.7 TRILLION under management. Melvin is a small fish compare to them.

[@jeffshackleford3152]

That is quite average in the hedge fund world.

[@thisbubblygoodness7611]

'it was very hard for me, my father gave me a small loan of 12 billion dollars'

[@AnexoRialto]

Those are the assets of other people that they're (mis)managing. Not they're own money.

[@TriflingToad]

That transition to the sponsor was so smooth I didn't relies I was watching an ad, damn.