I’m not sure you are seeing it clearly..or have any trading experience whatsoever. They took substantial risk. There is always someone bigger so if they were wrong they could have been buried. Then they reversed. If there are allegations of insider trading or collusion or something else then I’m ready to pile on but I don’t see anything here.
“Manipulation” is what? You want to create a rule that says a firm can’t buy more than x shares/dollars/% in a certain amount of time? Or if it does it has to hold onto those shares for a minimum time? A firm should be able to buy as much as it wants, subject to its margin requirements, and then sell whenever it wants, be it one second, one minute, one hour, one day…later.
I disagree. I don't think transacting for transacting sake is a good thing. If anything I just see it as a vehicle for both obfuscation, and a means with which to arbitrage info asymmetry against retail investors.
And no, I don't think merely adding liquidity is worth that being practicable and nigh-impossible to unwind.
