> There is literally, and has been for a long time, a website that tells you the short interest in a stock. It's sole purpose is to help people find short squeezes. That's why you have stats like "days to cover."
Again, I am not a lawyer, I am not your lawyer, and this is not a legal interpretation or legal advice; just my personal opinion.
Motivation and intent are the main factors in determining manipulation. So there are two cases:
1. A trader buys stock, seeking to profit, because they believe that a short squeeze may be incoming soon.
2. A trader buys stock, seeking to profit, because they intend to drive the stock price up, thereby causing a short squeeze.
(1) is legal (in my understanding; see the disclaimers above). (2) is not. They differ in their intents. The first one is "legitimate" demand, the second is "artificial."
Now, it's difficult to prove intent in court. And clearly, many people in WSB legitimately are buying the stock because of (1). But there are some who are doing (2). They have plausible deniability, though, and that's why it's unlikely that anyone in WSB will be successfully prosecuted without more concrete evidence.
Again, I am not a lawyer, I am not your lawyer, and this is not a legal interpretation or legal advice; just my personal opinion.
Motivation and intent are the main factors in determining manipulation. So there are two cases:
1. A trader buys stock, seeking to profit, because they believe that a short squeeze may be incoming soon.
2. A trader buys stock, seeking to profit, because they intend to drive the stock price up, thereby causing a short squeeze.
(1) is legal (in my understanding; see the disclaimers above). (2) is not. They differ in their intents. The first one is "legitimate" demand, the second is "artificial."
Now, it's difficult to prove intent in court. And clearly, many people in WSB legitimately are buying the stock because of (1). But there are some who are doing (2). They have plausible deniability, though, and that's why it's unlikely that anyone in WSB will be successfully prosecuted without more concrete evidence.