Why would it be illegal? Market manipulation? What do you call what these financial sites like marketwatch, Bloomberg and these Tv shows like mad money have been doing for decades? You know why it’s legal? Because if Citron can publicly say that Nvidia/Tesla/Palanrie are a casino, or called some stocks as fraud or a quick scheme to get rich like he did with Shopify and Ubiquiti, to help his shorting positions, it falls into “I’m just expressing an opinion “. Now try to pinpoint a movement by the possibility of anyone being able to go on Reddit and post his positions? If it’s not Reddit, it’s also Facebook investor groups, Tik-Tok, etc.
On top of that, you’re quick to point at DFV for the attention, while I would point out that Citron Research calling out WSB live on Twitter and making rounds on all these above platforms and then falling flat on the face by not remembering there’s an inauguration on Monday, and then not really laying out coherently why you would evaluate a company for less than their digital sales alone, really just appeared as desperate and publicized this whole thing to every investors, because of those above platforms. The shortest leveraged the media, as they always do, to manipulate the narrative. Investors smelled blood, and rightfully so.
Also, as much as WSB is a meme monster, they are not responsible for 197M volume movement today. There’s other silent hedge funds that are just on the same side and see that short sellers are in a corner. It’s a waiting game. They also have more means than typical investors to ask for a margin call when it gets too obvious the brokers are helping one side.